CHARLESTON, W.Va. – The West Virginia Center on Budget and Policy is warning against trying to close the state's $600 million budget gap entirely or mostly through cuts. Governor Jim Justice wants to raise $450 million in new revenue - with about half of that coming from increased business taxes.
But, his plan faces a GOP-controlled Legislature - especially on the House side - dominated by opponents of government spending.
Ted Boettner, the executive director of the Center on Budget and Policy, says reaching balance through just cuts would hurt government programs necessary for economic growth.
"If West Virginia doesn't raise substantial revenue to close its $600 million budget gap, schools will see a huge decrease in funding, as will our public colleges, our health care, our senior centers," he explained.
House of Delegates Speaker Tim Armstead says West Virginians already are taxed too much, although he may be open to closing some sales-tax exemptions. For his part, Justice has said the state can't cut its way out of the crisis.
After several years of across-the-board cuts under former Governor Earl Ray Tomblin, state agency funding is already down 20 percent. Justice has also laid out an alternative budget that depends on further deep cuts, perhaps to show what would happen to popular programs.
Boettner says some lawmakers might be willing to risk going in that direction, but most West Virginians think more cuts would endanger needed services. He says there is a "huge disconnect" between the public and many lawmakers on this.
"According to a recent poll, 70 percent of West Virginians and a majority of Republicans said they would be willing to pay more taxes if it means no cuts to important public programs like education, roads and public safety," he said.
Boettner says the new group Protect West Virginia aims to educate the public through workshops around the state. He says it also wants to keep folks engaged on budget questions during the legislative session.
Boettner says on the website ProtectWV.org, you can learn more and see ways to make your voice heard on the issue.
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The Indiana Chamber of Commerce outlined six key priorities for lawmakers ahead of the legislative session in January.
Rather than releasing detailed policy positions, the Chamber emphasized broad focus areas, including workforce, education, economic growth, infrastructure, quality of place and community health.
Phil GiaQuinta, D-Fort Wayne, House Minority Leader, responded to the Chamber's priorities, highlighting the need to address child care as a factor in economic development.
"We talk about economic development with things that impact economic development here in the state. Child care is really one of those," GiaQuinta contended.
The organization stressed the critical role of affordable child care in workforce development, citing a report estimating Indiana loses $4.2 billion annually, including $1.7 billion in tax revenue due to child care challenges. High costs force some parents out of the workforce, straining the state's economy.
Statehouse leaders acknowledged the issue but differ on solutions. Democrats argued child care deserves more state investment, while Republican leaders believe the private sector should play a larger role.
Todd Huston, R-Fishers, Speaker of the House, said businesses should not expect the state to solve their child care problems entirely.
"They've done a lot of different things to try to support families and young families. We will continue to do that," Huston stated. "But I think we also have to set a level of expectations that we're not going to; the state's not going to be funding all universal pre-K."
The Chamber plans to release detailed policy proposals in January, aiming to guide lawmakers toward strategies to strengthen Indiana's economy and workforce.
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North Dakota is no stranger to public pension debates. States face pressure to keep retirement systems well-funded and new data show most Americans place great value on such benefits for both government and private-sector workers.
According to the National Institute on Retirement Security, 86% of Americans believe all workers, not just those employed by state and local governments, should have a pension. There are similar approval levels when asked how important public pensions are in recruiting teachers and public safety workers.
Dan Doonan, executive director of the institute, suggested it is not too surprising to see the results.
"Pensions, along with other benefits, are part of creating that culture of careers and not jobs," Doonan explained.
Starting in January, North Dakota will close its main public pension plan for new hires, who will instead be offered a 401(k)-style benefit. The move followed debate over whether it was the right way to address a $1.9 billion unfunded liability. Backers argued it protects benefits for existing workers and taxpayers but skeptics contended it makes it harder to attract workers to the public sector.
Doonan noted the survey results overlap with the idea maintaining an experienced public-sector workforce is a good thing for community members and not just the employee and employer.
"In general, when public services are done well, they're often invisible, right?" Doonan emphasized. "We want good roads, we want safe communities, and I think Americans understand the role of having career public servants in terms of delivering those outcomes."
The Bureau of Labor Statistics said state and local governments employ about 20 million workers, which represents about 13% of the U.S. workforce.
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As Nebraskans anticipate the upcoming holiday season, some might also be looking ahead to the 2025 tax season, which will include a new tax credit for family caregivers, including those looking after military veterans.
Starting in 2025, a new state law provides eligible family caregivers up to $2,000 in tax credits for out-of-pocket expenses. The cap increases to $3,000 if the family member receiving care has dementia or is a veteran.
Jina Ragland, associate state director of advocacy and outreach for AARP Nebraska, said those who served have access to care benefits through the Department of Veterans Affairs but added it sometimes is not enough.
"Because some of their service-related illnesses or injuries, they extend beyond what they're able to afford, or maybe what the coverage is through the VA," Ragland explained.
She pointed out it puts more pressure on loved ones assisting them on a daily basis. During National Veterans and Military Families Month, supporters of the new law hope more families will see if they are eligible. Ragland noted while it helps reduce the financial strain, greater awareness of resources is also needed, to help all family caregivers avoid burnout.
Ragland emphasized one example is providing caregivers information about where to turn for guidance when a loved one is first discharged from a hospital. She argued entities at all levels need to maintain progress, because their outreach shows a demand for solutions.
"Over 90% of Nebraskans say that they want to age in place with the lowest level of care," Ragland reported. "In order to do that, oftentimes we have to rely on family caregivers."
There are no age restrictions to qualify for the tax credit. As for eligibility factors, the law includes an income limit of $50,000 dollars for individuals and $100,000 for married couples.
Disclosure: AARP Nebraska contributes to our fund for reporting on Budget Policy and Priorities, Consumer Issues, Health Issues, and Senior Issues. If you would like to help support news in the public interest,
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