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Senate Finance Committee hears budget requests from SBA, National Guard, and Dept. of Arts

West Virginia Press Association Staff Report

CHARLESTON, W.Va. – The Senate Finance Committee, on Tuesday, heard budget presentations from West Virginia’s School Building Authority (SBA) and National Guard, as well as the state’s Dept. of Arts, Culture and History.

First before the committee was School Building Authority Executive Director Andy Neptune. 

“FY (fiscal year) 2024 was a very busy year for the School Building Authority,” Neptune began. “In June of 2023 the SBA members approved approximately $14 million MIP (Major Improvement Projects) multi-county technical centers. 

The next issue that members of the SBA addressed was the need for an increase of the square footage cost-estimate. After an in-depth analysis, the SBA board members agreed to a 46% increase, which provided a more realistic figure for projected estimates.”

According to Neptune, 27 counties requested funding from the SBA last November. As a result, the SBA disbursed more than $111 million to satisfy the needs of 19 of the 27 counties. 

“This funding will support 10 new schools, and 13 major school renovations,” Neptune noted.

Also appearing before the committee was SBA Chief Financial Officer Jordan Kirk, who briefly explained the SBA’s investment strategy.

“The SBA has provided over $4 billion, including $2.5 billion in state funds, and $1.7 billion in local funds since the inception of the program in 1989,” Kirk said, adding that the SBA’s budget request for FY 2024 was just over $363 million. 

According to Kirk, at $431 million, the SBA’s total requested budget for FY 2025 is approximately $1 million less than Gov. Jim Justice’s proposal. 

At the conclusion of the presentation, Committee Chair Eric Tarr, R-Putnam, questioned Neptune about the disbursement strategy of the $111 million paid out to the 19 counties.

“We use a matrix to score all of the needs that come in,” Neptune said. “The counties that come in with bonds issues for new schools, those factor in maybe a little heavier than the rest. Then you start to look at the severity of the situation.”

Neptune explained that SBA staff members perform inspections of the locations requesting funding to determine that severity. The requests are then funded in the order of urgency. 

Next to present was Secretary Randall Reid-Smith of the W.Va. Dept. of Arts, Culture and History.

“The mission of the W.Va. Dept. of Arts, Culture and History is to identify, preserve, protect, promote, and present the ideas, arts and artifacts of West Virginia’s heritage,” Reid-Smith said. “Building pride in our past accomplishments, and confidence in our future.”

Reid-Smith added that 2024 marks his eighteenth time presenting the department’s budget request to the legislature. Reid-Smith further noted that the Dept. of Arts, Culture and History, since 2018, has reduced expenses by $15,660,015, with no reduction to programs or grant funding. 

“Our state-appropriated funds come from general revenue and lottery,” Reid-Smith said. “The proposed 2025 fiscal year budget for Dept. of Arts, Culture and History is $7.4 million from general revenue, and just at $15.8 million from lottery.”

According to Reid-Smith, the department also receives “just about $16.6 million” in federal funding.

Once Reid-Smith’s presentation was concluded, Sen. Jack David Woodrum, R-Summers, told the secretary, “You have transformed your agency.”

“You have done tremendous things with it financially, and for arts and culture across the state,” Woodrum added. “We really appreciate it.”

The day’s final presenter was Major General William Crane, Adjutant General of the West Virginia National Guard, who began by laughingly telling committee members, “Since you’re all so uplifted by him (Reid-Smith), I’ll be happy to bring you back down to Earth.” 

“For this fiscal year (2025), our request is the $18,268,870, which is the same as our current fiscal year,” Crane said. “The only difference with this would be the pay increase, which is about $380,000 roughly. In the surplus piece, you’ll see about a $2.5 million increase for the Recruit WV program. It’s in coordination with other state agencies. What we’re trying to do is bring more retirees and members that leave service to West Virginia to fill – I think there’s 29,000 vacancies across the state of West Virginia. We certainly would like to bring folks that we already know are drug free, [and] already know how to show up to work on time.”

According to Crane, the National Guard’s FY 2025 budget proposal is in line with Justice’s recommended budget, once the pay increase has been factored in.

“Our budget request includes two improvement packages,” Crane said. “One is for a one-time increase of close to $2 million, and that’s to fund some projects that we have […] throughout the state. The second one is a one-time increase of $600,000.”

Crane explained that the National Guard will receive federal funding for the Martinsburg Readiness Center renovation project, and the state is required to match 25% of that funding. The total expected cost of the project is $28,256,900. The state’s total contribution will be $7,064,225, with the balance of $6,464.225 to be allocated in FY 2027. 

At the conclusion of Crane’s presentation, Sen. Charles Clements, R-Wetzel, asked, “When do you think you’ll get all of your people (National Guard service members) out of our jails?”

Clements was referring to the ongoing utilization of National Guard service members to compensate for staff shortages at the state’s correctional facilities.

“The governor has told us that by the end of March he would like us to transition out,” Crane said. “So we’re working toward that goal. We’ve already started in some of the facilities where the staffing levels are high enough […], and as we can rotate out, we’re going to do that.”

The Senate Finance Committee will meet again at 3 p.m. Wednesday, when they will hear budget presentations from the Bureau of Senior Services, the Department of Veterans Affairs, and the Department of Revenue. 

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