Tax & Budget
Issue Brief: Cracking the cracker bill
February 2, 2012 -- A bill signed into law last week by Governor Tomblin will give a major tax incentive to companies that want to locate a cracker plant in West Virginia. According to the bill's fiscal note, this tax incentive would have no fiscal impact on the state. In reality, not only will the state lose millions in tax revenue, it will have to shoulder the costs of increased demand on public services that such a facility will require once it locates here. Read
Permanent mineral trust fund would set aside money for when resources are gone
January 30, 2012 -- As one of the least economically diverse states in the nation, West Virginia relies heavily on its natural resources for revenue. Funds from these resources fluctuate and, one day, will be gone. As the Marcellus “Gold Rush” comes to West Virginia, it is time for policymakers to consider establishing a permanent mineral trust fund in West Virginia, similar to what six other states have done. “Creating an Economic Diversification Fund: Turning Nonrenewable Natural Resources into Sustainable Wealth for West Virginia” highlights the benefits that such funds have brought to other states and how one could benefit West Virginia. Read the report.
Analysis of Governor’s FY 2013 Budget
January 20, 2012 -- Governor Tomblin’s FY 2013 budget will give West Virginia a small surplus but the state could head for red ink in the near future as expenditures for the state’s correction system as well as Medicaid grow, and revenue from the business franchise tax is reduced to 0%. Read the report.
W. Va. economic development funding: The role of federal earmarks
December 18, 2011 -- WVCBP Policy Analyst Sean O'Leary and Vice President Dr. Karen Kunz recently co-authored "West Virginia Economic Development Funding: The Role of Federal Earmarks" which examines the use of federal earmarks to fund economic development in West Virginia. The study discusses the state's dependence on federal earmarks and how this affects its ability to attract other more reliable forms of revenue. Read
Investing in the future: Making the severance tax stronger for West Virginia
December 13, 2011 -- As West Virginia policymakers consider legislation to regulate the state’s next big energy boom, this WVCBP report finds that strengthening the severance tax would help the state take advantage of its natural resource wealth and would not put the state at a competitive disadvantage. Read
Policy Memo: Marshall University natural gas tax study proves virtually nothing
October 19, 2011 -- A Marshall University study fails to look at the big picture in its analysis of the natural gas severance tax burden. This WVCBP paper suggests different ways to look at this severance tax impact which more accurately compare West Virginia's tax rate to those of other energy-producing states. Read
Extending the payroll tax cut
September 9, 2011 -- President Obama's Jobs Act includes extending the temporary payroll tax cut passed last December. The payroll tax cut has been an effective stimulus in West Virginia benefiting approximately 900,000 people and providing $500 million in tax relief. The president's new proposal would provide a $1,500 tax cut to the average family, help prevent a renewed recession and provide more additional economic stimulus than other measures like a cut in the corporate tax rate. Read
Property Taxes: A West Virginia primer
April 28, 2011 -- The West Virginia Center on Budget and Policy's new guide -- “Property Taxes: A West Virginia Primer” -- explains how property taxes work and some of the important public services they fund. For hard copies please contact Linda Frame. Read
Issue Brief: Serious problems with a federal spending cap
April 27, 2011 -- On April 26, 2011 Senator Manchin endorsed a plan to limit total federal spending to 20.6 percent of the Gross Domestic Product (GDP). While on the surface the plan looks like a benign proposal to handle the federal deficit and debt, it would eventually lead to major cuts in Medicare, Medicaid, and possibly Social Security. The West Virginia Center on Budget and Policy has prepared a report that shows just how much would need to be cut in Medicare, Medicaid and Social Security benefits, greatly impacting the state's aging population, under the proposal supported by Senator Manchin. Read
Budget Brief: FY 2012 budget update
April 14, 2011 -- Acting Governor Tomblin's Fiscal Year 2012 budget survived the legislative process relatively intact and contained no major cuts or new taxes. West Virginia remains in a fiscally stable position. Read
Issue Brief: House proposal cuts millions in public goods for West Virginians
February 24, 2011 -- The Republican proposal in the U.S. House of Representatives to cut current-year (2011) non-security discretionary funding by 13.8 percent indiscriminately slashes effective programs such as Head Start, education, child care, infrastructure, crime prevention, and energy development. West Virginia senior citizens, children and college students would all be negatively impacted. Read
The Governor’s FY 2012 Budget: A good start, but room for improvement
February 4, 2011 -- Unlike many other states, West Virginia is not cutting any major programs or imposing any new taxes in FY 2012 but does face many challenges in the years ahead. A report released February 3, 2011 by the West Virginia Center on Budget and Policy provides an overview of the state’s budget, describes the proposed major changes, and looks at budgetary trends. It also offers solutions to ensure that the state continues to provide the public investments needed to help its citizens prosper. Read
Making the case for a state earned income tax credit
February 2, 2011 -- The West Virginia Center on Budget and Policy teamed up with the Alliance for Sustainable Families to explain the benefits of adopting a state Earned Income Tax Credit (EITC) in West Virginia to state legislators. Policy Analyst Elizabeth Paulhus presented to the House Health and Human Resources Committee how such an initiative would help struggling West Virginia families and discussed many avenues for funding the state EITC. Read Giving Credit to West Virginia: A State EITC Would Help Struggling Families /Read Giving Credit to West Virginia’s Working Families: Reasons to support a State Earned Income Tax Credit / Read Giving Credit to West Virginia’s Working Families: Using TANF to fund a State Earned Income Tax Credit
FY 2012 Budget Outlook: Challenges and Opportunities
January 18, 2011 -- A presentation on the 2012 Budget made to legislators and staff at a West Virginia Education Association (WVEA) legislative reception at the West Virginia Culture Center. View
Issue Brief: Business Taxes and Economic Development
January 13, 2011 -- Does West Virginia's business personal property tax keep companies from investing in the state? Do states with low business taxes have stronger economic growth? Evidence suggests that taxes actually may have a minor impact on a state's economic development. Instead, other factors like a highly trained workforce are more important. Read
Mountain or Molehill? Putting OPEB in Perspective for West Virginia
January 10, 2011 -- The issue of retiree health care for public employees, or Other Post Employment Benefits (OPEB), is likely to top the policy agenda for the 2011 West Virginia Legislative Session. By placing the OPEB issue in context, this paper aims to demonstrate that the liability is not a crisis, but rather a manageable concern. Read Report / Read Presentation
The Federal Deficit: The Facts
November 4, 2010 -- An Issue Brief identifying the facts behind the federal deficit. Both spending and revenues have contributed to the deficit. Growth in federal spending is projected to slow, and the economy is expected to outgrow the current deficit. The brief identifies healthcare costs rather than spending as the primary source of the long-term deficit problem. Closing the jobs deficit will help close the short-term federal deficit. Read
Eliminating Business Personal Property Tax Would Hurt Education Funding
October 22, 2010 -- In 2010, the West Virginia House of Delegates and the WV Tax Modernization Working Group endorsed allowing counties to exempt business personal property from property tax rolls. A recent analysis by the West Virginia Center on Budget and Policy shows that such an exemption would reduce much-needed funding of our education system, put a financial strain on our county and city governments and could lead to a tax shift to homeowners and other in-state businesses. Read
Report Issued on West Virginia Budget Development Process
September 10, 2010 -- West Virginia University students researched and made recommendations on West Virginia’s budget development process and how it compares to other states. Their findings include that legislators do not have the opportunity to counteract gubernatorial vetoes to budget bill changes and the public has little ability to participate in the overall process. Read the Report. Read a Two-Page Summary of the Report.
The Impact of Coal on the West Virginia State Budget
June 22, 2010 -- This report, co-issued by the West Virginia Center on Budget and Policy and Downstream Strategies examines the net impact of the coal industry on the W. Va. state budget and finds that the industry itself—including its direct and indirect employees—actually costs West Virginia state taxpayers more than it provides. Read
State tax credit would benefit working families
February 17, 2010 -- A state version of the federal Earned Income Tax Credit would bolster the economic security of working families, according to a new report released February 17 by the West Virginia Center on Budget and Policy and the Alliance for Sustainable Families. The state credit would impact an estimated 90,000 working families who struggle to make ends meet. Read
New brief examines Governor's proposed budget for FY 2011
February 5, 2010 -- Federal Recovery Act funding will prevent deep cuts in the state budget next year, as it has done this year. However, future budget shortfalls are on the horizon for West Virginia. This brief by the Center on Budget and Policy takes a close look at the Governor's proposed budget for FY 2011 and explores options to improve state budget stability. Read
Mid-Year Budget Cuts Premature
February 5, 2010 -- When year-to-date budget revenues declined by $13.7 million in November, the Governor reacted by ordering state agencies to cut 3.4 percent of their budgets. Read
State health programs cut in Governor's proposed budget
February 4, 2010 -- While the Recovery Act continues to bolster Medicaid funding, other health programs fared less well in the Governor's budget. According to a new brief by the Center on Budget and Policy, several small programs (including the WV Center for End of Life) were zeroed out, while others (including the Tobacco Education Program) received substantial cuts. Read
Paying for Priorities: A Behind-the-Scenes Look at the State Budget
September 2, 2009 -- “Paying for Priorities” examines how this year’s state budget was developed, where the revenues are expected to come from, and how the funds will be allocated among state agencies and programs. Read
West Virginia Ends 2009 Fiscal Year with Healthy Surplus
August 27, 2009 -- A summary of West Virginia's $178 million budget surplus for FY 2009. Read
“Magic” Money a Mere Illusion: Refund Anticipation Loans & the Earned Income Tax Credit in West Virginia
August 25, 2009 -- Working West Virginians with modest
incomes lost nearly $13 million of their 2006 federal income tax
refunds to tax preparers who promised them “fast cash." Refund
Anticipation Loans (RALs) provide high-interest credit or cash
advances to tax filers based on their expected refunds and are
marketed to those who need money quickly during tax season.
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Taxing West Virginia's Coal Reserves: A Primer
May, 2009 -- This new report describes the history and current methods of taxing one of the state’s most valuable resources. It is intended as a useful reference for county officials, coal companies, landowners, and local citizens. Morgantown-based Downstream Strategies prepared the report, in collaboration with the WV Center on Budget and Policy. Read | PDF
Balancing the State Budget: Raise Revenues before Cutting Programs
March 24, 2009 -- Read Full Report Read Report Highlights)\
Your Map to the State Budget
February, 2009 -- The West Virginia Center on Budget and Policy has published a citizen’s guide to the state budget process, which covers the basics of where the state gets and spends its money and how the annual budget is created, reviewed and adopted. Read Your Map to the State Budget.
Making Work Pay: A State Earned Income Tax Credit for West Virginia (Full Report)
January, 2009 -- This report makes the case for enacting a State Earned Income Tax Credit for W. Va. Read | PDF
Wages in Deep Decline for Young Workers -- Unions Can Help
October, 2008 -- Young unionized workers in West Virginia make more money and have better benefits than their non-unionized counterparts. Read
Fuel Shock: How West Virginia Can Beat the High Cost of Gasoline (Full Report)
September, 2008 -- Freezing a portion of the state gas tax is at best a short term solution that does not guarantee West Virginians any real savings and leaves them vulnerable to high gasoline prices. Read | PDF
Making Work Pay: A State Earned Income Tax Credit for West Virginia (Fact Sheet)
September, 2008 -- A West Virginia State Earned Income Tax Credit (SEITC) would boost the incomes of more than 145,000 working West Virginia families. Read | PDF
A State Earned Income Tax Credit Would Benefit More West Virginians than State Family Tax Credit
August, 2008 -- If West Virginia were to adopt a refundable SEITC, it would provide additional income to sufficiently help working family’s build a better future for themselves. Read
Federal Tax Cuts on Investment Income Heavily Favor Top One Percent of West Virginians
May, 2008 -- Federal tax cuts on investment income do little to help 99% of West Virginians. Read
High Costs, Dubious Benefits: The Fiscal Impact of Tax Cuts in SB 680 and SB 465 (Full Report)
March, 2008 -- This report analyzes how recent tax changes and new proposed business tax cuts will lead to either cuts in government services or require tax increases in the near future. | Read PDF
Proposed Corporate Tax Cuts: Analysis of SB 680 and SB 465 (Fact Sheet)
March, 2008 -- What do proposed corporate tax cuts mean to West Virginia? | Read PDF
Combined Reporting: How It Works and Why We Still Need It
February, 2008 -- This fact sheet makes the case for why W. Va.'s "combined reporting" law should not be repealed. | Read PDF