By ANDREA LANNOM
The Register-Herald
CHARLESTON, W.Va. — The legislative Conference Committee continued discussing options for a revenue bill, focusing a plan offered Monday by Gov. Jim Justice. The committee’s final day to release a report is today.
The conference committee, which originally was scheduled for 9 a.m., was delayed until 4:45 p.m. because of caucuses. The meeting lasted only about 10 minutes.
A House Committee on Finance discussion on the budget bill began soon after the conference committee concluded.
During Monday’s House floor session, Delegate Eric Nelson, said the reason for the delay for the conference committee was because discussions among members were ongoing and the governor caucused with House Democrats later in day.
Nelson, who serves on the committee, said although committee members didn’t meet over the weekend, lawmakers continued discussions. He said the Senate President and the Speaker of the House met with the governor on Saturday, so he didn’t feel that the weekend was lost.
On Friday, the House and Senate adopted a resolution to extend the amount of days the conference committee can meet. Conferees have to release their report three days after members are appointed. Since the Legislature appointed conferees last Wednesday, the deadline to release a report would have been midnight Saturday. With the adoption of the resolution, that deadline is now midnight Tuesday.
“The weekend was not lost,” Nelson said. “As a body, we weren’t here putting an expenditure on the citizens of West Virginia.”
Committee members left off on Friday discussing an option for triggers in reducing the personal income tax — a four-bracket system with reductions starting Jan. 1, 2018. This option would tie triggers to sales tax collections. An amendment to this option calls for the reduction of the sales tax in the event that the personal income tax is reduced by 20 percent over the three-year period.
In Monday’s meeting, Nelson explained the three plans that Justice had presented in an earlier press conference.
In that press conference, Justice unveiled three white boards representing what he said were House Speaker Tim Armstead’s plan, Senate President Mitch Carmichael’s plan and his plan.
Justice’s plan included changes to the rates of the sales tax to 6.35 percent. Justice also said under his plan, people making more than $300,000 a year would not get a tax cut from the reduction in personal income tax.
“The one thing we are lacking is numbers from the governor for this particular plan,” Nelson said, referencing tax brackets and the rates for those tax brackets.
Nelson went over the key points of the budget bill and the governor’s second introduced budget. Nelson explained the revenue for the committee substitute is $4.1 billion, which could be higher depending on what happens with the tax bill in conference committee.
The expenditure side is $4.28 billion, compared to the governor’s introduced budget, which was $4.35 billion.
Nelson said the budget still has a difference of about $180 million which will either be made up in revenue or cuts.
Matthew Pauley, budget analyst for the committee, said the committee substitute does not include the $25 million for the Save Our State Fund and the teacher pay raises, both contemplated by the governor. He said the budget is $3.8 million lower than the 2017 fiscal year.
Delegate Ron Walters, R-Kanawha, asked if the committee would pass the budget bill before the revenue measure.
“We will have to know what the revenue is before we can do the budget,” Nelson said.
Following a brief House floor session, House Speaker Tim Armstead discussed Justice’s three plans. He said he met with the governor over the weekend and told him where he felt the level of support was in the House.
Armstead said he didn’t think the governor “moved the needle” very much in the Republican caucus. He mentioned concerns with the sales tax rate and how the state’s financial situation may look in future years with a reduction in the personal income tax.
He said he approached the governor with a similar plan that passed the House with a few tweaks. He said he preferred a plan similar to what the House passed and what Justice characterized as “the Armstead plan.”
When asked if he could support Justice’s plan, he said delegates still have concerns with certain aspects.
“We’ll have to see what it comes down to,” he said. “There are still concerns about the sales tax and still a number of pieces changed. We are willing to work with the governor and would be open to that plan but again, I don’t think the support is there for that plan.”
However, he said he didn’t see Justice’s plan having support in the House.
“I think there is a very strong sentiment in the House and Senate that this is not the time to do personal income tax,” Armstead said. “I don’t see that changing. … I’ve told him time and time again. Any plan with income tax reform will be an uphill climb. I don’t think the majority of members will vote for that.”
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