“This is an issue that is only growing and West Virginia has a real opportunity to begin tackling this head on,” said Brian Dayton, vice president of policy and advocacy for the business-focused Chamber.
Justice announces special session late this month to consider another tax cut plus childcare
September 9, 2024
Gov. Jim Justice announced he’ll call a special session for Sept. 30 for lawmakers to consider tax cuts, support for childcare, and the appropriation of supplemental funds to address other needs in West Virginia.
The governor’s announcement came in a three-paragraph news release from his administration along with an accompanying video message. Together that described the broad outlines of the topics to be considered but suggested details are still to come.
“We’ve worked with the legislative leadership over the weekend. We’ve worked countless days in the past weeks and everything — and, really and truly, that date seems to work the very best for everybody. We want to be super respectful to the Legislature, but we’ve got to get things across the finish line,” Justice said in the video.
“I promised you that I would stand up and fight like crazy for you in trying to get another 5% tax cut for you. I promised you that I would try to help out with childcare and absolutely try to get our tax break across the finish line with childcare. There’s absolutely supplemental appropriations that need to be done, and we need to get the money out the door and get these projects moving.”
Justice first called for the 5% reduction on July 1, the start of a new fiscal year, catching legislative leaders by surprise.
The state instituted a 21.25% personal income tax cut this year in a package that included further automatic reductions under certain economic conditions.
West Virginia hit those economic conditions, which triggered an additional 4% personal income tax cut to go into effect.
Justice wants another 5% on top of that.
Justice’s second term as governor ends in just a few months. He is running as a Republican for United States Senate.
“I’ve promised you that I’m going to run through the finish line and work every day as hard as I can for the voters, for the Toby and Ediths out there. Inflation’s eating us up right now. We all know that. Toby and Edith need us. So I hope in every way, everybody in the Legislature hears that voice. Those people, it’s their money. And with all in me we can do it. We can do it; we can do it right now. We need another tax break,” Justice said in the video.
The Republican nominee to succeed Justice as governor, three-term Attorney General Patrick Morrisey, expressed support for the tax cut concept. But in a written statement provided by his campaign, Morrisey said that decision should come during the next legislative session, which is when newly-elected officeholders would have say-so.
“I applaud Governor Justice’s advocacy to lower our state income tax. Indeed, I plan to double down on that advocacy and advance the next phase of the Justice income tax cuts as the state’s next Governor. At the same time, it’s crucial that any major changes to the income tax system be accompanied with changes rightsizing government and paying for these tax cuts-this is best achieved during the next regular session of the Legislature when we can make the best informed decisions,” Morrisey stated.
Current lawmakers have generally expressed caution about the governor’s 5% tax cut proposal because other tax cuts are still going into effect and because there are additional spending commitments also still going into effect — like the continued rollout of the Third Grade Success Act and estimated additional costs for more Hope Scholarship enrollment.
“Governor Justice’s demand for more tax cuts flies in the face of fiscal responsibility and lawmakers should reject it,” said Kelly Allen, executive director of the progressive West Virginia Center on Budget & Policy think tank.
“The state is facing slowing revenue collections, already enacted tax cuts still yet to be phased in, and a myriad of unmet needs that must be addressed and assessed prior to more tax cuts that mostly benefit the wealthy.”
Justice has said child care issues will be a component of the special session that he intends to call.
The governor advocated for a child care tax credit during this year’s regular legislative session. Lawmakers also have been considering increased state funding for subsidies that could help child care providers stay afloat while keeping costs manageable for families.
The issue is simmering as childcare providers close under economic pressure. Updates to the federal Child Care and Development Fund, the nation’s largest funding stream to help families afford child care, now require that states subsidize based on enrollment rather than attendance.
The Department of Human Services is using short-term funds to cover that for now, and the agency has said it will provide 60-days notice to lawmakers before that money runs out. As the clock ticks on that stopgap funding, the state needs to determine how best to support childcare options affecting thousands of kids.
The West Virginia Chamber of Commerce has been pushing for greater support for childcare options in West Virginia.
Story by Brad McElhinny, MetroNews