State Senate Minority Leader Mike Woelfel, D-Cabell, asks questions Monday about a compromise between Republican legislative leaders and Gov. Jim Justice for a personal income tax cut.
CHARLESTON — Gov. Jim Justice and the West Virginia Legislature appear to be moving toward a reduced version of the governor’s proposed personal income tax cut.
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The House Finance Committee recommended House Bill 237, relating to the personal income tax, for passage to the full House Monday afternoon. The state Senate passed its version, Senate Bill 2033, in a 31-0 vote Monday afternoon, setting up a possible final vote today.
“Regardless of what the percentage is, we recognize that we have got funds available to give back to the citizens of West Virginia,” said House Finance Committee Chairman Vernon Criss, R-Wood, following Monday’s House floor session.
“I thank the governor’s staff for working with us to make sure we had room in future budgets to be able to offset where these tax cuts come from in a responsible manner,” said Senate Finance Committee Chairman Eric Tarr, R-Putnam.
Justice issued an amended proclamation earlier Monday with eight new bills, a concurrent resolution, and a change his proposal for a 5% personal income tax cut to a 2% cut.
Justice first called for a 5% personal income tax cut in July following the end of fiscal year 2024.However, some lawmakers expressed concerns over the last several weeks about the state general revenue budget being able to afford the loss of tax revenue beginning in fiscal year 2026 next July 2025.
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During his weekly administration briefing last week, Justice signaled that he would be willing to accept less than the 5% personal income tax cut he proposed.
A 2% cut in personal income tax rates would return approximately $46 million to taxpayers when fully implemented. The tax cut would go into effect in January at the start of the 2025 tax year along with a 4% personal income tax cut due to the state meeting the requirements of a trigger mechanism and formula allowing for personal income tax cuts up to 10% every year. The 4% personal income tax will return approximately $92 million to taxpayers when fully implemented.
“I think our taxpayers are hurting,” said Department of Revenue Secretary Larry Pack to the House Finance Committee during testimony when asked why the tax cut is needed now. “Inflation has been absolutely crushing people, so we’re doing everything we can to help people and our taxpayers as quick as we can as long as we can do it in a prudent fashion.”
With the passage of House Bill 225, that will take the total percentage of personal income tax cuts since 2023 during Justice’s administration to 27.25% and return more than $626 million to taxpayers by fiscal year 2026. Personal income tax collections of more than $2.2 billion made up nearly 40% of the state’s $5.7 billion in general revenue collections in fiscal year 2024.
HB 237 would also delay the effective date of the next personal income tax trigger put in place by the 2023 tax reform package. When the Department of Revenue determines the next personal income tax cut in August based on the trigger and formula, instead of that tax cut going into effect in tax year 2026, it would go into effect in tax year 2027.
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In order to pay for the $46 million loss in personal income tax revenue from the 2% cut, $19 million will come when a revenue bond is paid off soon. The remaining $27 million will come from cost savings ongoing from the reorganization of the Department of Health and Human Resources into the departments of Health, Human Services, and Health Facilities.
While the three-member Senate Democratic caucus voted for the bill, Senate Minority Leader Mike Woelfel, D-Cabell, raised concerns about passing a tax cut in an election year when a new governor and new legislature will take their seats next year. Justice is the Republican candidate for U.S. Senate, facing Democratic former Wheeling mayor Glenn Elliott.
“At the 11th hour, we’re going to find this money, we’re going to cut a tax, and we’re going to hamstring, it seems to me, the new governor…(Justice) won’t even be here,” Woelfel said. “There are a fair number of people in this room who are not going to be here in January…Why are we making the decision in October when we will reconvene in January?”
Other items on Justice’s second amended special session proclamation included: allowing funding for certain federally funded broadband expansion programs to come from the state Economic Development Authority; providing supplemental appropriations for West Virginia University, Marshall University, Concord University, Shepherd University, and New River Community and Technical College; providing $5 million for the Department of Health for statewide EMS program support; and providing $175,000 for the West Virginia State Police for repairs and refurbishment of helicopters.
Other added bills included: legislation transferring the powers and duties of the state Municipal Bond Commission to the State Treasurer’s Office; rules dealing with the issuing of refunding bonds and general obligation bonds; relating to fees and charges for municipality provided fire services; and a bill transferring funds from the State Treasurer’s Office to the Governor’s Civil Contingency Fund for additional funding for deferred maintenance at state colleges and universities.
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One concurrent resolution added to the amended special session calls for honoring the late U.S. Marine Corps veteran and Gold Star Family advocate Hershel “Woody” Williams as one of two West Virginia statues in the National Statuary Hall collection at the U.S. Capitol Building.
Three bills completed legislative action Monday: appropriating $15.7 million to the Adjutant General’s office of the West Virginia National Guard for capital outlay, repairs, and equipment, the state Military Authority, and the Recruit WV employment program; appropriating $87 million to the Public Employees insurance Agency for its reserve fund to abide by State Code that requires PEIA to maintain a reserve of 10% of the projected plan expenses; and appropriating $13.7 million to the West Virginia School of Osteopathic Medicine for building renovations.
CLARKSBURG, W.Va. (WCHS) — A West Virginia man accused of threatening to attack President Donald Trump and U.S. Immigration and Customs Enforcement workers was federally indicted this week.
Cody Lee Smith, 20, of Clarksburg was indicted on two counts of threats to murder the president, one count of influencing and retaliating against federal officials by threat of murder and one count of influencing a federal official by threat of murder, according to a news release from the U.S. Attorney’s Office for the Northern District of West Virginia.
Smith is accused of making a series of public posts on Instagram encouraging and threatening the murder of Trump, those who support him, Israelis and “all government officials,” the news release said.
The indictment also alleges that Smith sent a direct message via Instagram to Donald J. Trump, Jr., stating he would kill his father by cutting his “jugular.”
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In a phone call with the ICE tip line, Smith also threatened to kill ICE agents in Clarksburg and employees staffing the tip line.
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Smith faces up to 5 years for each of the presidential threat charges and faces up to 10 years in federal prison for each of the remaining counts.
West Virginia has said the right things about the need to capitalize on opportunities.
The Mountaineers aren’t following through when they come about.
The latest example came Tuesday night at Kansas State, which scored 21 unanswered points in the second half before holding off a furious West Virginia charge for a 65-53 victory at Bramlage Coliseum.
“The level of urgency and desire to win a game with so much on it wasn’t where it needed to be,” West Virginia head coach Ross Hodge said on postgame radio.
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The Wildcats (12-18, 3-14) played without leading scorer PJ Haggerty, a surprise scratch with an undisclosed injury.
Although WVU (17-13, 8-9) defeated Kansas State 59-54 with Haggerty in the lineup during a January matchup in Morgantown, the Mountaineers were unable to capitalize on his absence in the rematch and fell to 1-4 in their last five games.
Both teams were dismal offensively in the opening half, which ended with West Virginia leading, 26-23.
The Mountaineers got 10 points apiece from reserve forwards Chance Moore and DJ Thomas, helping the visitors to at least somewhat overcome a starting lineup that scored six points on 3-for-15 shooting over the first 20 minutes.
“When you’re playing a team that is a little down and out, you can’t give them life and can’t give them hope,” Hodge said. “We had so many opportunities in the first half and at the beginning of the game to make some plays and entice a team that’s been struggling to maybe keep struggling.”
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After a scoreless first half, WVU guard Honor Huff made his 100th three-pointer this season with 18:33 to play, allowing the Mountaineers to lead 31-27.
West Virginia went the next 8-plus minutes without a point, and Wildcats took control during that stretch.
Khamari McGriff scored the Wildcats’ first four points of the extended 21-0 spurt and accounted for four buckets and eight of the first 15 points during that time.
A jumper from CJ Jones with 10:53 remaining left the home team with a 48-31 advantage, before Thomas scored from close range to end his team’s extended drought at the 10:27 mark.
“I’m aware of our shortcomings and I understand when you’re deficient in some areas, your margin for error to win is razor thin,” Hodge said. “I’m disappointed with what was at stake, we got beat to loose balls. Would it have been nice to make more layups and threes? Of course. But when those things aren’t happening, you better do those other things.”
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KSU had separate 19-point leads, the latter of which came at 57-38 when McGriff made two free throws with 7:29 to play.
WVU then increased its aggressiveness offensively and reeled off the next 11 points, while the Wildcats began to play tentative while in possession.
A three-pointer from K-State’s Nate Johnson left the Wildcats with a 60-49 lead with 3:48 left, but the Mountaineers continued to battle and trailed by six when Chance Moore scored in the paint at the 1:24 mark.
Moore’s next basket made it a five-point game, and after a Johnson turnover, Huff made two free throws to bring WVU to within 61-58 with 48 seconds left.
Another KSU turnover gave the visitors the ball back, but after Moore missed a shot that the Mountaineers rebounded, Huff committed a costly turnover.
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Johnson made two free throws with 17 seconds left, and McGriff added two more with 7 seconds remaining before Huff made a trey at the buzzer.
Moore led WVU with 18 points and made 6-of-7 shots, but again struggled on free throws, finishing 5 for 9. WVU hurts its cause at the charity stripe and made only 9-of-16 attempts.
Brenen Lorient was the Mountaineers’ second-leading scorer with 14 second-half points, while Thomas followed with 12 and Huff added 11 on 3-for-11 shooting.
Treysen Eaglestaff led all players with 11 rebounds in defeat, but made only 3-of-12 shots in a six-point showing.
McGriff led KSU with 18 points and added seven rebounds.
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Johnson finished with 16 points and nine boards.
WVU had nine of its 13 turnovers in the second half.
“Nine turnovers in the second half creates more busted floors, more cross match opportunities and through that, it makes you vulnerable for paint touch opportunities,” Hodge said.
K-State played under the guidance of interim head coach Matthew Driscoll. Driscoll replaced Jerome Tang, who was fired in between the team’s first and second matchups with West Virginia this season.
“Sometimes in life you get what you deserve,” Hodge said, “and we deserved to lose tonight.”
Photo: Dave Casebolt, left, signed an agreement Tuesday with West Virginia American Water Company President Scott Wyman (City of Nitro)
NITRO, W.Va. — It’s a done deal.
Nitro Mayor Dave Casebolt signed an agreement Tuesday with West Virginia American Water Company President Scott Wyman completing the sale of the Nitro Regional Wastewater Utility including the sewer plant for $20 million.
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The water utility will now own and operate the city’s water and wastewater systems. The state Public Service Commission recently approved the deal.
Casebolt said it’s good to get the long-talked-about agreement signed. He said the city can’t afford to make the improvements required at the sewer plant.
“We’re looking at needing between 40 and 50 million dollars of upgrades to our system and expecting our four-thousand customer base to try to offset those costs is not even practical,” Casebolt said.
Casebolt said sewer bills are going to go up but he said they were going to go up regardless. He said the city was facing increasing rates by as much as 50 percent.
West Virgina American is planning $42 million in upgrades to the sewer system over the next five years, Casebolt said.
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“It’s a much-need investment and actually allow the system to handle rainwater much better where it’s not backing up into people’s homes,” Casebolt said.
