COVID funds issue trips up W.Va. budget

CHARLESTON, W.Va. (WSAZ) – Passing a budget has become a bit trickier for West Virginia lawmakers.

Finance leaders and the Governor’s Office confirmed that West Virginia is in negotiations with the federal government regarding an issue with $465 million in federal COVID relief.

Simply put, leaders WSAZ spoke with say the feds believe, with the COVID money West Virginia received, state education spending should have increased more than it did.

“There’s no panic involved in this,” said Del. Vernon Criss, R-Wood.

“There’s no issue whatsoever of any misspending or misappropriation of money,” said Brian Abraham, chief of staff for the West Virginia Governor’s Office.

But faced with the prospect of paying back $465 million it is having an impact on budgeting.

The Senate has taken steps to limit recurring expenses like pay raises.

The House is holding off on millions in surplus spending, including money for senior centers and first-responder training.

“We want to make sure that we’ve got enough in the piggy bank to cover any expenses might have,” said Sen. Eric Tarr, R-Putnam.

“We want to be prepared to be able to, if we have to, write a check,” Criss said. “We don’t particularly want to do, but we need to make sure — worst case scenario, I want to be prepared.”

All of this is happening as negotiations continue between the Governor’s Office and the federal government.

“I agree, wait and see is an OK thing and to be assured finally of something, but there was no reason to just cut wholesale from the budget in anticipation of something like this because that wasn’t needed,” Abraham said.

Lawmakers voted to spend more money for the school equipment and construction. They hope that increase, with pay raises and increased elementary spending in last year’s session, will satisfy the federal government and prevent any pay back.

“So that should also chip away at that $465 (million),” Tarr said. “Those have all been the discussions going on with the federal government.”

Lawmakers have a week to agree upon a budget.

Criss, the House finance chair, saying what passes may be a place holder until a special session.

Tarr, the Senate finance leader, hoping for something more solid.

The Governor’s Office holds out hope for a resolution with the federal government in the week ahead, but if that does not occur the Governor’s chief of staff says they are open to a special session later this spring.

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