Sen. Jim Justice, who promised rocket ship rides and boasted big budget surpluses, has left the new Gov. Patrick Morrisey with a problem: a projected $400 million deficit beginning next year.

Morrisey, who is in his first week on the job, said that the deficit was what his administration had found as of this week.

“We’re talking about what we’ve inherited. It’s not factoring in any new spending priorities or any proposed additional tax cuts,” he said Thursday at the state Capitol in Charleston, West Virginia.

“These problems weren’t created overnight,” he continued. “ … I can tell you that we do believe that there are significant structural problems with the budget, and I’m committed to fixing it.”

The Republican, who campaigned on ending big government spending, said the projected deficit doesn’t mean his administration won’t be able to offer another tax cut to residents or pay raises to teachers. He said they’re still a possibility his administration will address rising health care costs impacting the Public Employees Insurance Agency. 

“I’ve been very clear that I want West Virginia to be even more competitive with all the states that we touch,” Morrisey said. “But we’re going to have to look at this, and it’s going to take a while for anyone to go through this … I know that I remain very optimistic despite a lot of the big spending that’s occurred.”

Morrisey declined to put the blame specifically on Justice, saying, “I’m not going to talk about any individuals.” Justice, a Republican, was sworn into the U.S. Senate on Tuesday, forgoing the first 10 days of his Senate term.

Justice faced a $500 million budget deficit when he took office as governor in 2017.

He consistently commented on his work turning around the state’s financial situation, and he regularly touted his multi-million dollar surpluses. Justice was adamant that lawmakers keep a flat budget. Meanwhile, state health leaders said they needed nearly $300 million to address pressing issues in West Virginia, like the substance abuse crisis. Education leaders said they needed $258 million to implement necessary school safety measures amid a national rise in school violence. 

Last month, Justice told the Parkersburg News and Sentinel, “For all I know, we do not have a hole for [fiscal year] 2026 at all … the next budget will surely depend on decisions that are made by the next folks that come in and the Legislature and on and on and on.” 

This year’s budget bill, passed by the House and Senate on the last night of the 2024 regular legislative session, set the general revenue budget for the current fiscal year at roughly $4.9 billion, 5% less than Justice’s introduced version of $5.3 billion. 

Morrisey said on Tuesday that there had been “a lot of spending” in the last few months under Justice, adding that he would be “analyzing that rocket ship ride.” His administration will review a number of recent economic announcements under Justice, and non finalized contracts could be eliminated as he seeks to save money.

“The era of big spending is over. It’s over. In West Virginia, the time for spending beyond our means is over,” Morrisey said. 

Already taking steps to address spending 

Morrisey said that he expects the state to meet budget goals this year through June 30, the end of the current fiscal year. The shortfall in this year’s budget is temporarily being replaced by a one-time provider tax cash balance, he said.

He emphasized that he already began cutting costs, including an executive order issued on Tuesday that eliminated any state dollars tied to diversity initiatives. Another executive order requires state agencies to make a plan for more efficient spending.

In an effort to save money, Morrisey said that he will work with the Legislature to consolidate the existing Department of Economic Development with the Department of Commerce and to consolidate the existing Department of Arts, Culture and History with the Department of Tourism. The considerations are “an initial step toward making state government more efficient and effective,” according to Morrisey. 

He was unable to offer specifics about any potential job cuts in an effort to save money.

Despite the budget hole, Morrisey will push his tax cut in collaboration with the Legislature. 

“I do believe that West Virginia needs to continue to emphasize a reduction in taxes to become the lowest in the region,” he said. 

Morrisey will present his proposed budget to lawmakers when the regular 60-day legislative session begins next month. 

“We will continue to try to garner every efficiency out of state government, because our taxpayers deserve nothing less,” he said. 

Gov. Patrick Morrisey campaigned on “right sizing”. Now three days into Morrisey’s term as governor he’s proposing to restructure state departments. 

The new governor took his cabinet appointments as an opportunity to usher in an era of fewer governmental departments. 

In announcing five more cabinet appointments, Morrisey also announced plans to combine four state agencies into two. 

Morrisey said he will work with lawmakers to pass legislation that would combine The Department of Arts, Culture and History with the Department of Tourism. 

He said he also plans to work with the legislature to combine the Department of Commerce and the Department of Economic Development. 

Morrisey, who ran on reducing the size of the state’s government, said this is just the beginning of the consolidation of state agencies. 

“These are not going to be the end of the consolidation proposals,” Morrisey said. “You should expect that there will be a number of additional proposals in this area in the upcoming weeks.”

Morrisey said in the press conference that the state is staring down a budget deficit if the state doesn’t take necessary steps — including consolidations. 

“Those efficiencies are even more important in light of what we’re going to be talking about next,” he said “The era of big spending is over.” 

The new secretary of the Department of Commerce will be the current West Virginia Republican Party Chair, Mathew Herridge. 

Chelsea Ruby, who has been the secretary of tourism for the past eight years, was reappointed. 

Morrisey didn’t name secretaries for the Department of Arts, Culture and History or the Department of Economic Development.

West Virginia Public Broadcasting falls under the Department of Arts, Culture and History.  

Morrisey announced two more appointments Thursday. 

Stephen Todd Rumbaugh was appointed the secretary of transportation and commissioner of highways. Arvin Singh was appointed secretary of health. 

West Virginia just wrapped up a difficult road loss to No. 10 Houston, but there won’t be much time to rest up.

That’s because No. 2 Iowa State is set to travel to Morgantown for another Big 12 Conference matchup.

Head Coach Darian DeVries saw a lot to be proud of with the way that his team showed the will to battle back multiple times in a tough environment at Houston.

“It would have been easy to just fold in that second half and they didn’t do that. They swung all the way till the end and kept fighting,” he said.

But it’s not going to be any easier against a 15-1 Cyclones team that is fresh off a 74-57 win over Kansas.

“Iowa State’s an elite level team. A championship-level team. You know that’s what this league is right? You get to play and get these opportunities every night,” DeVries said.

The focus will be to try to learn from the things that didn’t go well against the Cougars and while it’s a different matchup against Iowa State, they also pride themselves on a physical brand of basketball.

The focus will be to get some rest and get the game plan ready on Friday before holding a practice in preparation for the game.

The difference this time is that West Virginia will have this game at home and that is something that everybody on the roster is looking forward to considering it is expected to be a sold-out home environment.

“Then Saturday we’re in Morgantown and now we got a full house. So, I know our guys will be excited. I know our fans are excited, sold out. So can’t wait for that atmosphere,” DeVries said. “And that’s something you’ve got to protect your home court, and our guys understand that. So, it’ll be a big opportunity for us.”