Difference between revisions of "West Virginia state budget"

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{{budget infobox2|
{{budget infobox|
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| state = West Virginia  
state = West Virginia |
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| image = Flag of West Virginia.png|
image = Flag of West Virginia.png|
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| budgetcal =Annual
budgetcal = Annual |
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| fiscalyear =2014
fiscalyear = 2014 |
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| credit=AA (as of May 2012)
datelaw= April 17, 2013 |
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| percentchangedr =   
lasteraltered = |
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| expenses =$4.2 billion  
revenue =  |
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| all funds expenses =$23.4 billion (FY 2013 estimate)
percentchangedr =  |
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| spending change =0.36%
expenses = $4.1 billion|
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| change =up
all funds expenses = |
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| governor = Earl Ray Tomblin
percentchanged = |
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| % federal = 34.71%
}}
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| state debt = $24,972,461,000
[[West Virginia]]'s Gov. [[Earl Ray Tomblin|Earl Ray Tomblin]] signed the state's $11.6 billion FY2013 budget into law on March 22, 2012.<ref>[http://www.register-herald.com/todaysfrontpage/x1440948429/Tomblin-signs-new-state-budget The Beckley Register Herald "Tomblin signs new state budget" March 22, 2012]</ref>
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| per cap debt = $13,459
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}}{{tnr|limit=3}}This page contains information about '''budget processes and policy issues''' in [[West Virginia]], including:
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* A summary of the budget drafting process
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* Trends in expenditures and revenues
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* Current and past fiscal year budget developments
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* Financial transparency measures
  
The state operates on an annual budget cycle.<ref>[http://www.ncsl.org/issues-research/budget/state-experiences-with-annual-and-biennial-budgeti.aspx National Conference of State Legislatures "State Experiences with Annual and Biennial Budgeting" April 2011]</ref> The fiscal year begins on July 1.
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Between fiscal year 2009 and fiscal year 2013, West Virginia's total expenditures increased by approximately $3 billion, from $20.4 billion in 2009 to $23.4 billion in 2013. This represents a 12.8 percent increase, outpacing the cumulative rate of inflation during the same period (9.06 percent, calculated using the Consumer Price Indices for January 2009 and January 2013).<ref>[http://www.bls.gov/cpi/cpid1402.pdf ''Bureau of Labor Statistics'', "CPI Detailed Report Data for February 2014," accessed April 9, 2014]</ref><ref>[http://inflationdata.com/Inflation/Inflation_Calculators/Cumulative_Inflation_Calculator.aspx ''InflationData.com'', "Cumulative Inflation Calculator," February 28, 2014]</ref>
  
West Virginia has a total state debt of approximately $23,738,138,000 when calculated by adding the total of outstanding official debt, pension and other post-employment benefits (OPEB) liabilities, Unemployment Trust Fund loans, and the FY2013 state budget gap.<ref>[http://www.statebudgetsolutions.org/publications/detail/state-budget-solutions-third-annual-state-debt-report-shows-total-state-debt-over-4-trillionState Budget Solutions "State Budget Solutions' third annual State Debt Report shows total state debt over $4 trillion" Aug. 28, 2012]</ref> The FY2013 state debt is slightly increased from the prior year's total of approximately $22,941,837,000.<Ref>[http://www.statebudgetsolutions.org/publications/detail/report-reveals-aggregate-state-debt-exceeds-4-trillion-2 State Budget Solutions “Report reveals aggregate state debt exceeds $4 trillion” Oct. 24, 2011]</ref>
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==Budget process==
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{{West Virginia budget process}}
  
West Virginia's total FY2012 state debt per capita is $12,794.33.<ref>[http://www.statebudgetsolutions.org/publications/detail/state-debt-more-than-37000-per-private-worker-13000-per-capita State Budget Solutions "State debt more than $37,000 per private worker, $13,000 per capita" Oct. 2, 2012]</ref>
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==Expenditures==
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===Definitions===
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{{Budget types background}}
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===2013 expenditures===
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[[File:West Virginia total expenditures 2013.png|right|thumb|500px|Breakdown of expenditures in FY 2013.<small><br>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>]]
 +
The table below breaks down expenditures for fiscal year 2013 (comparable figures from surrounding states are provided to give additional context).<ref name=expenditures2013>[http://www.nasbo.org/sites/default/files/State%20Expenditure%20Report.pdf ''National Association of State Budget Officers'', "State Expenditure Report, 2011-2013," accessed February 21, 2014]</ref> Figures for all columns except "Per capita expenditures" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita expenditures" have not been abbreviated.
  
==Federal Aid to State Budget==
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{| class="wikitable" style="text-align:center; width:55%;"
 +
! colspan="7" align="center" style="background-color:#008000; color: white;" | Total state expenditures, FY 2013 ($ in millions)<ref name=expenditures2013/>
 +
|-
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! valign="bottom" style="background-color:#444; color: white;" | State
 +
! valign="bottom" style="background-color:#444; color: white;" | General fund
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! valign="bottom" style="background-color:#444; color: white;" | Federal funds
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! valign="bottom" style="background-color:#444; color: white;" | Other funds
 +
! valign="bottom" style="background-color:#444; color: white;" | Bonds
 +
! valign="bottom" style="background-color:#444; color: white;" | Total
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! valign="bottom" style="background-color:#444; color: white;" | Per capita expenditures**
 +
|-
 +
|'''West Virginia''' || '''$4,159''' || '''$4,394''' || '''$14,736''' || '''$74''' || '''$23,363''' || '''$12,599.34'''
 +
|-
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|[[Kentucky state budget|Kentucky]] || $9,426 || $8,001 || $8,246 || $0 || $25,673 || $5,841.02
 +
|-
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|[[North Carolina state budget|North Carolina]] || $20,602 || $17,459 || $12,543 || $785 || $51,389 || $5,218.19
 +
|-
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|[[Tennessee state budget|Tennessee]] || $12,622 || $13,055 || $5,394 || $382 || $31,453 || $4,841.92
 +
|-
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|[[Virginia state budget|Virginia]] || $17,691 || $9,546 || $16,191 || $1,167 || $44,595 || $5,398.65
 +
|-
 +
|align="left" colspan="8" | <small>**Per capita figures are calculated by taking the state's total expenditures and dividing by the number of state residents according to United States Census estimates.<ref name=2013census/><ref name=2009census>[https://www.census.gov/popest/data/historical/2000s/vintage_2009/index.html ''United States Census Bureau'', "Vintage 2009: Annual Population Estimates," accessed February 26, 2014]</ref><br>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>
 +
|}
  
The chart below represents how much of the state’s budget comes from the federal government. The number is the corresponding ranking in relation to the rest of the nation (if #1, the state receives the highest percentage of federal funding in the nation):
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===Expenditures by function===
{| class="wikitable sortable"
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[[File:West Virginia expenditures by type 2012.png|right|thumb|500px|Breakdown of expenditures by function in FY 2012.<small><br>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>]]
| align="center" style="background:#f0f0f0;"|'''State'''
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State expenditures in West Virginia can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2012 data is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percents, indicating the share of the total budget spent per category.
| align="center" style="background:#f0f0f0;"|'''2008'''
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| align="center" style="background:#f0f0f0;"|'''2009'''
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{| class="wikitable" style="text-align:center; width:55%;"
| align="center" style="background:#f0f0f0;"|'''2010'''
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! colspan="8" align="center" style="background-color:#008000; color: white;" | Expenditures by function, FY 2012 (as percents)<ref name=expenditures2013/>
| align="center" style="background:#f0f0f0;"|'''2011'''
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|-
 
|-
| West Virginia || 30.41% (#24) || 33.97% (#24) || 37.9% (#21) || 37.55% (#22)
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! valign="bottom" style="background-color:#444; color: white;" | State
|}
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! valign="bottom" style="background-color:#444; color: white;" | Elementary and secondary ed.
*Figures were calculated by dividing each state’s intergovernmental revenue into its general revenue.<ref>[http://www.census.gov/compendia/statab/cats/state_local_govt_finances_employment/federal_aid_to_state_and_local_governments.html '''US Census''' Federal Aid to State and Local Governments]</ref><ref>[http://taxfoundation.org/blog/monday-map-federal-aid-state-budgets ''Tax Foundation''' "Monday Map: Federal Aid to State Budgets. Accessed October 15, 2013]</ref>
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! valign="bottom" style="background-color:#444; color: white;" | Higher ed.
 +
! valign="bottom" style="background-color:#444; color: white;" | Public assistance
 +
! valign="bottom" style="background-color:#444; color: white;" | Medicaid
 +
! valign="bottom" style="background-color:#444; color: white;" | Corrections
 +
! valign="bottom" style="background-color:#444; color: white;" | Transportation
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! valign="bottom" style="background-color:#444; color: white;" | Other
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|-
 +
|'''West Virginia''' || '''10.8%''' || '''14.1%''' || '''0.7%''' || '''12.7%''' || '''1.0%''' || '''5.8%''' || '''54.9%'''
 +
|-
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|[[Kentucky state budget|Kentucky]] || 19.8%''' || 25.7% || 0.9% || 22.5% || 2.4% || 8.9% || 19.8%
 +
|-
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|[[North Carolina state budget|North Carolina]] || 23.2% || 9.0% || 0.5% || 24.7% || 4.2% || 9.9% || 28.4%
 +
|-
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|[[Tennessee state budget|Tennessee]] || 17.7% || 12.8% || 0.4% || 30.7% || 2.7% || 6.4% || 29.3%
 +
|-
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|[[Virginia state budget|Virginia]] || 16.0% || 13.1% || 0.4% || 16.2% || 2.9% || 11.3% || 40.1%
 +
|-
 +
|align="left" colspan="8" | <small>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>
 +
|}
  
==FY2014 State Budget==
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===Expenditure trends===
In Aug. 2012, Gov. Tomblin instructed state agencies to plan to reduce spending by 7.5 percent in FY2014.  Higher education leaders asked to be exempt from those cuts, which would mean a cut of $34.8 million.<ref>[http://sundaygazettemail.com/News/201208100164 The Charleston Gazette "W.Va. higher ed seeks exemption from budget cuts" Aug. 10, 2012]</ref>
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From 2008 to 2012, expenditures on elementary and secondary education, public assistance, Medicaid, corrections and transportation all decreased, with expenditures on elementary and secondary education falling the most at 12.3 percent less than 2008. During that same time period, expenditures on higher education increased by 0.4 percent. The table below details changes in expenditures from 2008 to 2012.<ref name=expenditures2013/><ref name=expenditures2011>[http://www.nasbo.org/sites/default/files/2010%20State%20Expenditure%20Report_0.pdf ''National Association of State Budget Officers'', "State Expenditure Report, 2009-2011," accessed February 24, 2014]</ref><ref name=expenditures2012>[http://www.nasbo.org/sites/default/files/State%20Expenditure%20Report%20%28Fiscal%202010-2012%29.pdf ''National Association of State Budget Officers'', "State Expenditures Report, 2010-2012," accessed February 24, 2014]</ref><ref name=expenditures2009>[http://www.nasbo.org/sites/default/files/2009-State-Expenditure-Report.pdf ''National Association of State Budget Officers'', "State Expenditure Report, 2009," accessed February 24, 2014]</ref><ref name=expenditures2008>[http://www.nasbo.org/sites/default/files/FY08%20State%20Expenditure%20Report.pdf ''National Association of State Budget Officers'', "State Expenditure Report, 2008," accessed February 24, 2014]</ref> Figures are rendered as percents, indicating the share of the total budget spent per category.
  
==FY2013 State Budget==
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{| class="wikitable" style="text-align:center; width:65%;"
 +
! colspan="8" align="center" style="background-color:#008000; color: white;" | Expenditures from 2008 to 2012 (as percents)
 +
|-
 +
! valign="bottom" style="background-color:#444; color: white;" | Year
 +
! valign="bottom" style="background-color:#444; color: white;" | Elementary and secondary ed.
 +
! valign="bottom" style="background-color:#444; color: white;" | Higher ed.
 +
! valign="bottom" style="background-color:#444; color: white;" | Public assistance
 +
! valign="bottom" style="background-color:#444; color: white;" | Medicaid
 +
! valign="bottom" style="background-color:#444; color: white;" | Corrections
 +
! valign="bottom" style="background-color:#444; color: white;" | Transportation
 +
! valign="bottom" style="background-color:#444; color: white;" | Other
 +
|-
 +
|2012 || 10.8% || 14.1% || 0.7% || 12.7% || 1.0% || 5.8% || 54.9%
 +
|-
 +
|2011 || 23.3% || 14.2% || 1.4% || 23.5% || 2.9% || 8.3% || 26.3%
 +
|-
 +
|2010 || 24.4% || 13.2% || 1.4% || 23.0% || 3.2% || 9.1% || 25.8%
 +
|-
 +
|2009 || 24.6% || 13.3% || 1.2% || 21.4% || 3.4% || 8.0% || 28.0%
 +
|-
 +
|2008 || 23.1% || 13.7% || 1.3% || 19.6% || 3.7% || 8.5% || 30.2%
 +
|-
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|style="background-color:black; color:white"|'''Change in %'''
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| style="background-color:black; color:white" align="center"|'''-12.30%''' || align="center" style="background-color:black; color:white"|'''0.40%'''|| align="center" style="background-color:black; color:white"| '''-0.60%''' || align="center" style="background-color:black; color:white"|'''-6.90%''' ||align="center" style="background-color:black; color:white"| '''-2.70%''' || align="center" style="background-color:black; color:white"|'''-2.70%''' || align="center" style="background-color:black; color:white"|'''24.70%'''
 +
|-
 +
|align="left" colspan="8" | <small>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>
 +
|}
  
Gov. [[Earl Ray Tomblin|Earl Ray Tomblin]] signed the state's $11.6 billion FY2013 budget into law on March 22, 2012.<ref name=beckley>[http://www.register-herald.com/todaysfrontpage/x1440948429/Tomblin-signs-new-state-budget The Beckley Register Herald "Tomblin signs new state budget" March 22, 2012]</ref> The governor used his line-item veto power Wednesday to trim $13.5 million from the budget, citing economic uncertainty nationally to conclude the state must keep permanent budget increases to a minimum.<ref name=beckley/>  Items the governor vetoed included:<ref>[http://www.boston.com/news/education/higher/articles/2012/03/22/wva_gov_vetoes_13m_from_new_11b_state_budget/ Boston.com "W.Va. gov vetoes $13M from new $11B state budget" March 22, 2012]</ref>
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==Revenues==
* cut pay and benefit raises for State Police civilian employees by $1.05 million;
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===2013 revenues===
* cut funding for expenses at the Racing Commission nearly in half, by $696,800;
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[[File:West Virginia GF revenues 2013.png|right|400px|thumb|Breakdown of general fund revenue sources in FY 2013.<small><br>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>]]
*all $510,000 budgeted for equipment at the state Contractor Licensing Board;
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The table below breaks down general fund revenues by source in fiscal year 2013 (comparable figures from surrounding states are also provided to give additional context).<ref name=expenditures2013>[http://www.nasbo.org/sites/default/files/State%20Expenditure%20Report.pdf ''National Association of State Budget Officers'', "State Expenditure Report, 2011-2013," accessed February 21, 2014]</ref> Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.  
*reducing revenues from the lottery for the Development Office by $410,000.
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The budget bill as enacted can be found online.<ref>[http://www.budget.wv.gov/approvedbudget/Documents/HB2013_Enrolled.pdf West Virginia 2013 Budget. Accessed September 17, 2013].
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{| class="wikitable" style="text-align:center; width:55%;"
 +
! colspan="8" align="center" style="background-color:#008000; color: white;" | Revenue sources in the general fund, FY 2013 ($ in millions)<ref name=expenditures2013/>
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|-
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! valign="bottom" style="background-color:#444; color: white;" | State
 +
! valign="bottom" style="background-color:#444; color: white;" | Sales tax
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! valign="bottom" style="background-color:#444; color: white;" | Personal income tax
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! valign="bottom" style="background-color:#444; color: white;" | Corporate income tax
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! valign="bottom" style="background-color:#444; color: white;" | Gaming tax
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! valign="bottom" style="background-color:#444; color: white;" | Other taxes and fees
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! valign="bottom" style="background-color:#444; color: white;" | Total
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! valign="bottom" style="background-color:#444; color: white;" | Per capita revenue**
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|-
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|'''West Virginia''' || '''$1,197''' || '''$1,722''' || '''$249''' || '''$0''' || '''$982''' || '''$4,150''' || '''$2,238.04'''
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|-
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|[[Kentucky state budget|Kentucky]] || $3,022 || $3,723 || $401 || $0 || $2,202 || $9,348 || $2,126.82
 +
|-
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|[[North Carolina state budget|North Carolina]] || $5,309 || $10,958 || $1,192 || $0 || $3,100 || $20,559 || $2,087.62
 +
|-
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|[[Tennessee state budget|Tennessee]] || $6,643 || $126 || $1,083 || $0 || $3,551 || $11,403 || $1,755.39
 +
|-
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|[[Virginia state budget|Virginia]] || $3,249 || $11,093 || $821 || $0 || $1,259 || $16,421 || $1,987.92
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|-
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| align="left" colspan="8" | <small>**Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates for 2013.<ref name=2013census>[http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=bkmk ''United States Census Bureau'', "Annual Estimates of the Resident Population: April 1, 2010 to July 1, 2013," accessed February 26, 2014]</ref><br>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>
 +
|}
  
Higher education received $528,967,825 million in state funds for FY2012, according to the state's Higher Education Policy Commission.<ref>[http://sundaygazettemail.com/News/201208100164 The Charleston Gazette "W.Va. higher ed seeks exemption from budget cuts" Aug. 10, 2012]</ref>
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===Revenue trends===
 +
The table below details the change in revenue sources in the general fund from 2009 to 2013.<ref name=expenditures2013/><ref name=expenditures2011/> Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.  
  
'''Legislative budget'''
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{| class="wikitable" style="text-align:center; width:65%;"
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! colspan="8" align="center" style="background-color:#008000; color: white;" | Revenue sources in the general fund, West Virginia ($ in millions)<ref name=expenditures2013/><ref name=expenditures2011>[http://www.nasbo.org/sites/default/files/2010%20State%20Expenditure%20Report_0.pdf ''National Association of State Budget Officers'', "State Expenditure Report, 2009-2011," accessed February 24, 2014]</ref>
 +
|-
 +
! valign="bottom" style="background-color:#444; color: white;" | Year
 +
! valign="bottom" style="background-color:#444; color: white;" | Sales tax
 +
! valign="bottom" style="background-color:#444; color: white;" | Personal income tax
 +
! valign="bottom" style="background-color:#444; color: white;" | Corporate income tax
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! valign="bottom" style="background-color:#444; color: white;" | Gaming tax
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! valign="bottom" style="background-color:#444; color: white;" | Other taxes and fees
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! valign="bottom" style="background-color:#444; color: white;" | Total
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! valign="bottom" style="background-color:#444; color: white;" | Per capita revenue**
 +
|-
 +
|2013 || $1,197 || $1,722 || $249 || $0 || $982 || $4,150 || $2,238.04
 +
|-
 +
|2012 || $1,178 || $1,647 || $174 || $0 || $1,017 || $4,016 || $2,163.00
 +
|-
 +
|2011 || $1,148 || $1,593 || $303 || $0 || $1,020 || $4,064 || $2,190.62
 +
|-
 +
|2010 || $1,095 || $1,447 || $233 || $0 || $983 || $3,758 || $2,026.81
 +
|-
 +
|2009 || $1,110 || $1,557 || $270 || $0 || $964 || $3,901 || $2,143.67
 +
|-
 +
|style="background-color:black; color:white"|'''Change in %'''
 +
| style="background-color:black; color:white" align="center"|'''7.84%''' || align="center" style="background-color:black; color:white"|'''10.60%'''|| align="center" style="background-color:black; color:white"| '''-7.78%''' || align="center" style="background-color:black; color:white"|'''N/A''' ||align="center" style="background-color:black; color:white"| '''1.87%''' || align="center" style="background-color:black; color:white"|'''6.38%''' || align="center" style="background-color:black; color:white"|'''4.40%'''
 +
|-
 +
|align="left" colspan="8" | <small>**Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates.<ref name=2013census/><ref name=2009census>[https://www.census.gov/popest/data/historical/2000s/vintage_2009/index.html ''United States Census Bureau'', "Vintage 2009: Annual Population Estimates," accessed February 26, 2014]</ref><br>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>
 +
|}
  
The state [[West Virginia State Senate|Senate]] approved the $11.6 billion spending plan on a 34-0 vote while the [[West Virginia House of Delegates|House] voted 85-15 to approve the budget on March 16, 2011. The budget increases spending 2 percent over the FY2012 budget.<ref>[http://www.wvmetronews.com/news.cfm?func=displayfullstory&storyid=51636 WV MetroNews "Lawmakers Approve State Budget" March 16, 2012]</ref>  The legislative budget increased the Medicaid Trust Fund by $170 million more than FY2012, which is $14 million more than the governor had requested.<Ref name=approve/>
+
==State budgets by year==
 +
{{See budget bill|Link=[http://www.budget.wv.gov/approvedbudget/Documents/HB2014_Enrolled.pdf H.B. 2014]}}
 +
===Fiscal year 2014===
 +
{{Budget bill box
 +
|State = West Virginia
 +
|Year = 2014
 +
|Link =http://www.legis.state.wv.us/bill_status/bills_history.cfm?year=2013&sessiontype=rs&btype=bill&input=2014 H.B. 2014
 +
|Introduced =February 13, 2013
 +
|Days =
 +
|State House =April 12, 2013
 +
|Vote lower house =85-13
 +
|State Senate =April 13, 2013
 +
|Vote upper house =33-1
 +
|Conference =April 17, 2013
 +
|Conference upper house vote =
 +
|Conference lower house vote =
 +
|Governor = [[Earl Ray Tomblin]]
 +
|Signed =April 22, 2013
 +
|Vetoed =  
 +
}}
  
'''Governor's proposed budget'''
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The state's FY 2014 budget was signed into law by [[Governor of West Virginia|Governor]] [[Earl Ray Tomblin]] on April 22, 2013.<ref>[http://www.legis.state.wv.us/bill_status/bills_history.cfm?year=2013&sessiontype=rs&btype=bill&input=2014 ''West Virginia State Legislature'', "House Bill 2014," accessed May 6, 2014]</ref> A copy of the full budget bill can be found [http://www.budget.wv.gov/approvedbudget/Documents/HB2014_Enrolled.pdf here].
  
The govern proposed FY2013 state budget general fund of $4.55 billion, an increase of $15 million over FY2013.  The proposed budget does not include any tax increases, and goes forward with about $80 million of previously approved tax cuts, including a $50 million reduction in state sales tax collections on food.<Ref name=soaring>[http://sundaygazettemail.com/News/201201110267 The Charleston Gazette "Soaring Medicaid costs the '800-pound gorilla' in state budget' Jan. 11, 2012]</ref><ref>[http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=5&ved=0CFQQFjAE&url=http%3A%2F%2Fwww.governor.wv.gov%2Fnewsroom%2Fpressreleases%2FDocuments%2F2012%2520State%2520of%2520State%2520Final%2520-%2520Press%2520Copy.pdf&ei=krU5T9WIDMSA2AW0mcmeCg&usg=AFQjCNEZlD-IUBHl6j4gI1w6e3swtk-STA State of the State Address Jan. 11, 2012]</ref>
+
===Fiscal year 2013===
 +
::''See also: [[West Virginia state budget (2012-2013)]]
  
The budget does not include pay raises for state employees.<ref name=mail>[http://dailymail.com/News/statehouse/201201110257 The Charleston Daily Mail "Tomblin's budget doesn’t include pay raises, prison" Jan. 11, 2012]</ref>
+
===Fiscal year 2012===
 +
::''See also: [[West Virginia state budget (2011-2012)]]
  
''Revenue''
+
===Fiscal year 2011===
 +
::''See also: [[West Virginia state budget (2010-2011)]]
  
The governor's proposed budget relies on tax collections of $4.1 billion.  It also relies on surplus and lottery proceeds to boost revenue.<ref name=mail/>
+
===Fiscal year 2010===
 +
::''See also: [[West Virginia state budget (2009-2010)]]
  
''Medicaid''
+
==Historical spending==
 +
State budget historical spending below was compiled by the [[National Association of State Budget Officers]]. Figures reflect the reported "Total Expenditures" in Table 1. Figures for all columns are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000).<ref name=expenditures2013/><ref name=expenditures2012/>
 +
{{State budget historical spending
 +
|State=West Virginia
 +
|totalbudgets= 3
 +
|2011-2012genfund=4144
 +
|2011-2012otherfund=13540
 +
|2011-2012fedfund=4064
 +
|2011-2012bonds=73
 +
|2011-2012budgettotal=21821
 +
|2010-2011genfund=3770
 +
|2010-2011otherfund=12906
 +
|2010-2011fedfund=4460
 +
|2010-2011bonds=62
 +
|2010-2011budgettotal=21198
 +
|2009-2010genfund=3704
 +
|2009-2010otherfund=12122
 +
|2009-2010fedfund=4475
 +
|2009-2010bonds=77
 +
|2009-2010budgettotal=20378
 +
}}
  
The share of the budget for Medicaid will rise $111 million to $500 million due to a decline in federal Medicaid funds from a 4-to-1 to a 3-to-1 match of state dollars, and federal health-care mandates that will add 170,000 individuals to the program.<Ref name=soaring/>  The 2013-2014 state budget will require $650 million for Medicaid.<Ref>[http://www.wvmetronews.com/news.cfm?func=displayfullstory&storyid=50911 MetroNews "State Budget Work Begins In Earnest" Feb. 13, 2012]</ref>
+
==State debt==
 +
According to a January 2014 report by the nonprofit organization [[State Budget Solutions]], West Virginia had a state debt of over $24 billion. Its state debt per capita was $13,459. The report revealed that state governments faced a combined $5.1 trillion in debt, 33 percent of annual gross state product. The obligation amounts to $16,178 per capita in the nation. A bulk of the state debt -- 79 percent -- was linked to unfunded [[public pensions]].<ref>[http://www.statebudgetsolutions.org/publications/detail/state-budget-solutions-fourth-annual-state-debt-report ''State Budget Solutions'', "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014]</ref><ref>[http://washingtonexaminer.com/exography-unfunded-public-employee-pensions-are-driving-state-debts-skyward/article/2542548 ''Washington Examiner'', "EXography: Unfunded public employee pensions drive state debts skyward," January 21, 2014]</ref>
 +
{{State debt box
 +
|State = West Virginia
 +
|totaldebt=$24,972,461,000
 +
|totaldebtrank=39
 +
|percapdebt=$13,459
 +
|percapdebtrank=29
 +
|expenditures = $17,684,000,000
 +
|expendituresrank =50
 +
}}
  
State Budget Office director Mike McKown said in Jan. 2011 that if lawmakers keep everything at current levels and funded all programs the way they were at the start of 2012, the 2013 state budget would be about $225 million short.  The $225 million deficit is primarily due to rising enrollment in and costs for Medicaid. The governor's administration said that raising taxes to close the gap is not an option but it would consider tapping into the $800 million-plus rainy day fund.<ref name=appove>[http://www.dailymail.com/News/statenews/201201050186 The Daily Mail "Lawmakers Approve State Budget "  Jan. 6, 2011]</ref>
+
===Public pensions===
 +
::''See also: [[West Virginia public pensions]] and [[West Virginia public employee salaries]]''
  
==FY2012 State Budget==
+
A 2012 report from the Pew Center on the States noted that [[West Virginia public pensions|West Virginia's pension system]] was funded at 58 percent at the close of fiscal year 2010, well below the 80 precent funding level experts recommend. Consequently, Pew designated the state's pension system as cause for "serious concern."<ref name=wvpew>[http://www.pewstates.org/research/state-fact-sheets/widening-gap-update-west-virginia-85899399358 ''Pew Center on the States'' "Widening Gap Update: West Virginia," June 18, 2012]</ref>
  
Better than expected tax revenues through FY2011 means a brighter revenue picture for the FY2012 budget, and a potential surplus to keep it balanced, meaning that the state could avoid raiding emergency reserves or making such painful choices as program cuts, tax hikes and public worker layoffs.<ref name=halfway>[http://www.bloomberg.com/news/2011-01-04/halfway-through-budget-year-w-va-revenues-strong.html Bloomberg "Halfway through budget year, W.Va. revenues strong" Jan. 4, 2011]</ref>
+
The funding ratio for the state's pension system increased from 54.91 percent in fiscal year 2006 to 64.16 percent in fiscal year 2011, a 9.25 percent jump. Unfunded liabilities increased slightly in the same period, from $5.36 billion in fiscal year 2006 to $5.71 billion in fiscal year 2011.
  
A conference committee composed of members from both the House of Delegates and Senate hammered out the differences between the budget bills passed by both chambers, and developed a budget that they said did not vary greatly from the governor's proposed budget.<ref>[http://www.wtrf.com/story.cfm?func=viewstory&storyid=96157 WTRF.com "State Budget Steps Closer to Completion" March 18, 2011]</ref>  The legislature passed its [http://www.legis.state.wv.us/Bill_Status/bills_text.cfm?billdoc=HB2012%20SUB%20ENR.htm&yr=2011&sesstype=RS&i=2012 budget bill] on March 18, 2011.<Ref name=pass>[http://www.wvmetronews.com/news.cfm?func=displayfullstory&storyid=44034 West Virginia MetroNews "Lawmakers Pass $11.4 Billion Budget" March 18, 2011]</ref>
+
===Credit ratings===
 +
States sometimes sell general obligation bonds to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). Credit rating agencies, such as Standard and Poor's, assign grades to states, evaluating their ability to pay the principal and interest on such bonds. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest. Generally speaking, a higher credit ranking indicates lower risk for an investor, which in turn lowers costs for taxpayers.<ref name=credit>[http://www.pewstates.org/projects/stateline/headlines/infographic-sp-state-credit-ratings-20012012-85899404785 ''Stateline: The Daily News Service of The Pew Charitable Trusts'', "Infographic: S&P State Credit Ratings, 2001-2012," July 13, 2012]</ref>
  
The budget passed by the legislature uses a general revenue estimate of $4.014 billion, which is $1.5 million less than what was initially introduced by acting Governor [[Earl Ray Tomblin|Earl Ray Tomblin]], but up by about $270 million from FY2011.<Ref name=pass/>
+
The table below lists the Standard and Poor's credit ranking for West Virginia from 2001 to 2012 (grades from surrounding states are provided for additional context).<ref name=credit/>
  
Highlights of the bill include:
+
{| class="wikitable" style="text-align:center; width:55%;"
*$100 million to casinos who plan to use the money to buy slot machines<Ref name=pass/>
+
! colspan="6" align="center" style="background-color:#008000; color: white;" | S&P credit ratings from 2001 to 2012
*$40 million increase in motor vehicle fees<Ref name=pass/>
+
|-
*pay raises for state employees
+
! valign="bottom" style="background-color:#444; color: white;" |
*pay hikes for mine inspectors, although it did not include inspectors for Marcellus shale which had been requested by the governor
+
! valign="bottom" style="background-color:#444; color: white;" | '''West Virginia'''
*increased funding for public libraries, increased funding for the needs-based higher education grant program
+
! valign="bottom" style="background-color:#444; color: white;" | Kentucky
*a fully funded public employee retirement fund, with $426 million going toward unfunded liabilities
+
! valign="bottom" style="background-color:#444; color: white;" | North Carolina
 +
! valign="bottom" style="background-color:#444; color: white;" | Tennessee
 +
! valign="bottom" style="background-color:#444; color: white;" | Virginia
 +
|-
 +
| 2012 || AA || AA- || AAA || AA+ || AAA
 +
|-
 +
| 2011 || AA || AA- || AAA || AA+ || AAA
 +
|-
 +
| 2010 || AA || AA- || AAA || AA+ || AAA
 +
|-
 +
| 2009 || AA || AA- || AAA || AA+ || AAA
 +
|-
 +
| 2008 || AA- || AA- || AAA || AA+ || AAA
 +
|-
 +
| 2007 || AA- || AA- || AAA || AA+ || AAA
 +
|-
 +
| 2006 || AA- || AA- || AAA || AA+ || AAA
 +
|-
 +
| 2005 || AA- || AA- || AAA || AA || AAA
 +
|-
 +
| 2004 || AA- || AA- || AAA || AA || AAA
 +
|-
 +
| 2003 || AA- || AA- || AAA || AA || AAA
 +
|-
 +
| 2002 || AA- || AA- || AAA || AA || AAA
 +
|-
 +
| 2001 || AA- || AA || AAA || AA || AAA
 +
|-
 +
|}
  
==Budget transparency==
+
==Federal aid to state budget==
West Virginia currently has limited transparency.  The West Virginia legislature website posts information about state grant awards [http://www.legis.state.wv.us/SAGA/Agency.cfm here,] but unfortunately "The Budget & Spending Transparency Act," which would have created greater spending transparency, did not pass during the 2009 legislative session.  However, in state legislator Kelli Sobonya's own words, "I will reintroduce this bill [The Budget & Spending Transparency Act] again next session for consideration."<ref>[http://www.wvgop.org/News/Read.aspx?ID=8643 ''West Virginia Republican Party'', "Delegate Sobonya's guest editorial submitted to herald dispatch/wayne co. news," June 17, 2009]</ref>
+
::''See also: [[Federal aid to budgets in the 50 states]]''
 +
The chart below notes how much of the state’s general revenues come from the federal government. Figures were calculated by dividing each state’s federal intergovernmental revenue into its general revenue. The number in the rightmost column indicates the state's ranking in relation to the rest of the nation (e.g., if "1," the state receives the highest percentage of federal funding in the nation). Figures from neighboring states are included to provide additional context.<ref name=federalaid>[http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=COG_2012_FIN009&prodType=table ''United States Census Bureau'', "State Government Finances: 2012," accessed February 24, 2014]</ref>
  
===Government tools===
+
State governments receive aid from the federal government to fund a variety of joint programs, such as Medicaid. Federal aid varies considerably from state to state. For example, [[Mississippi state budget#Federal aid to state budget|Mississippi]] received approximately $7.7 billion in federal aid in 2012, which accounted for more than 45 percent of the state's general revenues. By contrast, [[Alaska state budget#Federal aid to state budget|Alaska]] received roughly $2.9 billion in federal aid in 2012, just under 20 percent of the state's general revenues.<ref name=federalaid/>
  
The following table is helpful in evaluating the level of transparency provided by a state spending and transparency database:
+
{| class="wikitable" style="text-align:center; width:50%;"
 +
! colspan="4" align="center" style="background-color:#008000; color: white;" | Federal aid to state budgets in 2012
 +
|-
 +
! valign="bottom" style="background-color:#444; color: white;" | State
 +
! valign="bottom" style="background-color:#444; color: white;" | Federal aid as % of general revenue
 +
! valign="bottom" style="background-color:#444; color: white;" | Total federal aid
 +
! valign="bottom" style="background-color:#444; color: white;" | National rank
 +
|-
 +
| '''West Virginia''' || '''34.71%''' || '''$4,267,399,000''' || '''19'''
 +
|-
 +
| [[Kentucky state budget|Kentucky]] || 35.69% || $8,056,691,000 || 14
 +
|-
 +
| [[North Carolina state budget|North Carolina]] || 33.24% || $15,192,577,000 || 26
 +
|-
 +
| [[Tennessee state budget|Tennessee]] || 41.02% || $11,198,575,000 || 3
 +
|-
 +
| [[Virginia state budget|Virginia]] || 23.53% || $9,278,113,000 || 48
 +
|-
 +
|}
 +
 +
===Stimulus===
 +
West Virginia received $1.61 billion in federal stimulus spending between February 2009 and June 2013.<ref>[http://www.recovery.gov/Pages/default.aspx ''Recovery.gov'', "Stimulus Spending by State," accessed February 21, 2014]</ref>
  
{|style="width:100%" class=wikitable
+
==Budget transparency==
|+ '''Criteria for evaluating spending databases'''
+
{| class="wikitable" style="float:right; margin:1em 1em 1em 1em; text-align:center; width:15%;"
!State Database!![[Criteria for evaluating databases|Searchability]]!![[Criteria for evaluating databases|Grants]]!![[Criteria for evaluating databases|Contracts]]!![[Criteria for evaluating databases|Line Item Expenditures]]!![[Criteria for evaluating databases|Dept/Agency Budgets]]!![[Criteria for evaluating databases|Public Employee Salary]]
+
! colspan="2" align="center" style="background-color:#008000; color: white;" | Transparency evaluation
 
|-
 
|-
|align=center|Transparency West Virginia<ref>[http://transparencywv.org/ TransparencyWV]</ref>||{{yes}}||{{Yes (Sunshine Review)}}||{{no (Sunshine Review)}}||{{yes}}||{{yes}}||{{No (Sunshine Review)}}
+
! valign="bottom" style="background-color:#444; color: white;" |
 +
! valign="bottom" style="background-color:#444; color: white;" | Transparency West Virginia
 +
|-
 +
|[[Criteria for evaluating databases|Searchability]] || {{Yes (Sunshine Review)}}  
 +
|-
 +
|[[Criteria for evaluating databases|Grants]] || {{Yes (Sunshine Review)}}  
 +
|-
 +
|[[Criteria for evaluating databases|Contracts]] || {{No (Sunshine Review)}}  
 +
|-
 +
|[[Criteria for evaluating databases|Line item expenditures]] || {{Yes (Sunshine Review)}}  
 +
|-
 +
|[[Criteria for evaluating databases|Dept./agency budgets]] || {{Yes (Sunshine Review)}}  
 +
|-
 +
|[[Criteria for evaluating databases|Public employee salaries]] || {{No (Sunshine Review)}}  
 +
|-
 +
|colspan="2"|<small>Last evaluated in 2010.</small>
 
|}
 
|}
:: ''See also: [[Evaluation of West Virginia state website]]''
+
::''See also: [[Evaluation of West Virginia state website]] and [[Constitutional provisions regarding reading of bills]]''
  
===[[Independent transparency sites]]===
+
As of 2010, West Virginia had limited transparency. The [[West Virginia State Legislature]] website posted information about state grant awards [http://www.legis.state.wv.us/SAGA/Agency.cfm here] but during the 2009 legislative session, they did not pass "The Budget & Spending Transparency Act," which would have created greater spending transparency.<ref>[http://www.wvgop.org/News/Read.aspx?ID=8643 ''West Virginia Republican Party'', "Delegate Sobonya's guest editorial submitted to herald dispatch/wayne co. news," June 17, 2009]</ref>
West Virginia University students compiled a report finding that the state is a "laggard" in the area of budget transparency and making recommendations for increased transparency, including, "All agencies, boards and commissions should make their budget requests and presentations available online.  There should be common standards for agency disclosures across state government to make sure that information is available to the public in an easy-to-find manner. Setting online public disclosure standards that match those of other states with high marks for transparency and accountability."<ref>[http://www.wvpolicy.org/downloads/WVCBPBudgetTransparencySummary091010.pdf Accountability and Transparency in the West Virginia Budget Process: Moving West Virginia from Laggard to Pace Setter Sept. 2010]</ref>
+
  
===Multi-Measure Budget Transparency Profile===
+
===Government tools===
 +
The table to the right is helpful in evaluating the level of transparency provided by [http://transparencywv.org/ Transparency West Virginia].
  
The Institute of Government and Public Affairs at the University of Illinois created a multi-measure transparency profile for Wisconsin, which measures state transparency as of September 2011 using indicators from a range of organizations.  These indicators measure both website transparency and other recognized facets of governmental transparency.  In addition, IGPA presents four unique indicators of non-transparency based on the observation that transfers or reassignments between general and special funds can obscure the true fiscal condition of a state.<ref>[http://igpa.uillinois.edu/ Institute of Government and Public Affairs]</ref><ref> [http://igpa.uillinois.edu/system/files/West_Virginia_Profile_IGPA_093011.pdf University of Illinois Transparency Profile for West Virginia]</ref>
+
===Independent transparency sites===
 +
West Virginia University students compiled a report finding that the state was a "laggard" in the area of budget transparency and made recommendations for increased transparency, including:<ref>[http://www.wvpolicy.org/downloads/WVCBPBudgetTransparencySummary091010.pdf ''West Virginia Univeristy'', "Accountability and Transparency in the West Virginia Budget Process: Moving West Virginia from Laggard to Pace Setter," September 2010]</ref>
 +
*Budget requests and presentations from all state agencies, boards and commissions should be available online.  
 +
*Common standards should be set for agency disclosures across the state government to make sure that information is available to the public in an easy-to-find manner.  
 +
*Online public disclosure standards of other states with high marks for transparency and accountability should be copied and set for West Virginia.
  
In addition to the individual state profile, IGPA offers a 50-state comparison and profiles for other states.<ref>[http://igpa.uillinois.edu/system/files/50_States_Transparency_Profiles.pdf University of Illinois 50 State Transparency Comparison]</ref><ref>[ [http://igpa.uillinois.edu/content/state-transparency-profiles University of Illinois State Transparency Profiles]</ref>
+
===Multi-measure budget transparency profile===
===U.S. PIRG "Following the Money" report===
+
The Institute of Government and Public Affairs at the University of West Virginia created a multi-measure transparency profile for West Virginia, which measured state transparency as of September 2011 using indicators from a range of organizations.  These indicators measured both website transparency and other recognized facets of governmental transparency.  In addition, IGPA presented four unique indicators of non-transparency based on the observation that transfers or reassignments between general and special funds can obscure the true fiscal condition of a state.<ref>[http://igpa.uillinois.edu/ ''Institute of Government and Public Affairs at University of West Virginia'', "Home page," accessed February 21, 2014]</ref><ref name=allstates>[http://igpa.uillinois.edu/system/files/50_States_Transparency_Profiles.pdf ''Institute of Government and Public Affairs at University of West Virginia'', "Budget Transparency Profiles - All 50 States," September 2011]</ref>
{{Following the Money 2014 Report by State|State=West Virginia|Grade=C|Score=72|Level=middling}}
+
  
==Budget background==
+
IGPA devised a budget transparency index based on information available from the National Association of State Budget Officers. West Virginia tied for eighth in the nation with 11 other states, earning six out of eight possible points.<ref name=allstates/>
West Virginia's fiscal year begins July 1 and ends June 30 of the following year. Agency budget requests are submitted by September, after which the Governor compiles his recommendation for the new fiscal year. Officials revenue estimates are completed by November prior to the Governor's final budget recommendations. Governor submits the budget the second Wednesday in January to the [[West_Virginia_Legislature|Legislature]] who proceed to hold a series of hearings from January through March.; in a year following a gubernatorial election, the date is extended to the second Wednesday in February.<ref>[http://www.wvbudget.gov/charts/budproc.pdf ''State of Virginia'', "Budget Process," accessed April 8, 2009]</ref><ref>[http://www.nasbo.org/Publications/PDFs/2008%20Budget%20Processes%20in%20the%20States.pdf ''National Association of Budget Officers'', "Budget Processes in the States," 2008]</ref>  
+
 
+
==Accounting principles==
+
::''See also: [[West Virginia government accounting principles]]''
+
The West Virginia State Auditor's Office is responsible for examining state and local governments and school boards as well as paying all the state's bills.
+
  
===Credit Ratings===
+
{| class="wikitable" style="text-align:center; width:55%;"
<BR>
+
! colspan="2" align="center" style="background-color:#008000; color: white;" | West Virginia - IGPA score for budget process, contents and disclosure
{| {{table}}
+
| align="center" style="background:#f0f0f0;"|'''Credit Rating'''
+
| align="center" style="background:#f0f0f0;"|'''Fitch'''
+
| align="center" style="background:#f0f0f0;"|'''Moody's'''
+
| align="center" style="background:#f0f0f0;"|'''S&P'''
+
 
|-
 
|-
| West Virginia  ||AA+<ref>[http://www.governor.wv.gov/media/pressreleases/2013/Pages/Governor-Tomblin-Announces-Fitch-Affirms-West-Virginia-Bond-Rating.aspx Governor Tomblin Announcings Fitch Affirms West Virginia Bond Rating. Accessed September 17, 2013]</ref>||Aa3||AA<ref>[http://www.pewstates.org/projects/stateline/headlines/infographic-sp-state-credit-ratings-20012012-85899404785 Pew Stateline Infographic: S&P State Credit Ratings, 2001–2012. Accessed September 17, 2013]</ref>
+
! valign="bottom" style="background-color:#444; color: white;" | Budget transparency indicator
 +
! valign="bottom" style="background-color:#444; color: white;" | Yes or no?
 +
|-
 +
| Performance measures || {{Yes}}
 +
|-
 +
| "Generally Accepted Accounting Principles" budget || {{no (Sunshine Review)}}
 +
|-
 +
| Multi-year forecasting || {{Yes}}
 +
|-
 +
| Annual cycle || {{Yes}}
 +
|-
 +
| Binding revenue forecast || {{No (Sunshine Review)}}
 +
|-
 +
| Legislative revenue forecast || {{Yes}}
 +
|-
 +
| Non-partisan staff || {{Yes}}
 +
|-
 +
| Constitution or statutory tax/spend limitations || {{Yes}}
 +
|-
 +
| '''TOTAL''' || '''6'''
 
|-
 
|-
|
 
 
|}
 
|}
 +
In addition to the individual state profile, IGPA offers a 50-state comparison and profiles for other states.<ref name=allstates/>
 +
 +
===U.S. PIRG "Following the Money" report===
 +
{{Following the Money 2014 Report by State|State=West Virginia|Grade=C|Score=72|Level=middling}}
 +
 +
==Accounting principles==
 +
::''See also: [[West Virginia government accounting principles]]''
 +
The [[West Virginia State Auditor]] is responsible for examining state and local governments and school boards as well as paying all the state's bills.
  
==Stimulus==
+
==Contact information==
West Virginia received $1.61 billion in federal stimulus spending between February 2009 and June 2013.<ref>[http://www.recovery.gov/Pages/default.aspx ''Recovery'', "Stimulus Spending by State"]</ref>
+
WV State Budget Office<br>
 +
Department of Revenue<br>
 +
Building 1, Room W-310<br>
 +
State Capitol Complex<br>
 +
Charleston, WV  25305-0171<br>
 +
Phone: 304-558-0040<br>
 +
Fax: 304-558-1588<br>
 +
http://www.budget.wv.gov/
  
==Public Employees==
+
==See also==
::''See also: [[West Virginia public employee salaries]]''
+
* [[West Virginia government sector lobbying]]
::''See also: [[West Virginia public pensions]]''
+
* [[West Virginia public pensions]]
According to 2011 Census data, the state of West Virginia employed a total of 48,334 people. Of those employees, 36,210 were full-time employees receiving a net pay of $131.0 million per month and 12,124 were part-time employees paid $10.8 million per month.<ref name=census>[http://www2.census.gov/govs/apes/08stlwv.txt 2008 West Virginia Public Employment U.S. Census Data]</ref>
+
* [[Governor of West Virginia]]
 +
* [[West Virginia State Legislature]]
 +
* [[West Virginia State Senate]]
 +
* [[West Virginia House of Delegates]]
 +
* [[West Virginia State Auditor]]
  
 
==External links==
 
==External links==
{{colbegin|3}}
 
 
*[http://www.statebudgetsolutions.org/state/detail/west-virginia State Budget Solutions, West Virginia]
 
*[http://www.statebudgetsolutions.org/state/detail/west-virginia State Budget Solutions, West Virginia]
*Model transparency legislation from the [[American Legislative Exchange Council]] is available [http://www.showmethespending.org/uploads/Taxpayer_Transparency_Act.pdf at this link.]
+
*[http://www.showmethespending.org/uploads/Taxpayer_Transparency_Act.pdf American Legislative Exchange Council]
 
*[http://www.wvbudget.gov/ West Virginia State Budget Office]
 
*[http://www.wvbudget.gov/ West Virginia State Budget Office]
 
*[http://westvirginiapolicy.com/ Public Policy Foundation of West Virginia]
 
*[http://westvirginiapolicy.com/ Public Policy Foundation of West Virginia]
 
*[http://www.usgovernmentspending.com/West_Virginia_state_spending.html West Virginia Government spending]
 
*[http://www.usgovernmentspending.com/West_Virginia_state_spending.html West Virginia Government spending]
 
*[http://www.legis.state.wv.us/ West Virginia State Legislature]
 
*[http://www.legis.state.wv.us/ West Virginia State Legislature]
*[http://www.wv.gov/Pages/default.aspx West Virginia state site]
+
*[http://www.wv.gov/Pages/default.aspx West Virginia state website]
*[http://www.herald-dispatch.com/videos/x1962704400/Video-Gov-Joe-Manchin-discusses-the-budget-and-responsible-government Governor Joe Manchin Discusses the Budget and Responsible Government (Video)]
+
{{colend (Sunshine Review)}}
+
  
==Additional reading==
+
===Additional reading===
*[http://www.wvgov.org/sec.aspx?id=99 ''Governor Joe Manchin'',"State of the state address 2009,"January 19, 2009]
+
*[http://uspirg.org/reports/usp/following-money-2014 ''U.S. PIRG'', "Report: Transparent & Accountable Budgets," April 8, 2014]
 +
*[http://www.nytimes.com/2014/02/03/us/battles-loom-in-many-states-over-what-to-do-with-budget-surpluses.html?hp&_r=0 ''The New York Times'', "Battles loom in many states over what to do with budget surpluses," February 3, 2014]
 +
*[http://www.cbpp.org/cms/index.cfm?fa=view&id=3067 ''Center on Budget and Policy Priorities'', "Policy Basics: The ABCs of State Budgets," February 7, 2013]
  
 
==References==
 
==References==
 
{{reflist|2}}
 
{{reflist|2}}
 +
 
{{State budgets}}
 
{{State budgets}}
 
{{West Virginia}}
 
{{West Virginia}}

Revision as of 09:44, 6 May 2014

West Virginia state budget

Flag of West Virginia.png
Budget calendar:  Annual
Fiscal year:  2014
State Credit Rating:  AA (as of May 2012)
Current Governor:  Earl Ray Tomblin
Financial figures
GF expenses[1]:  $4.2 billion
All funds expenses:  $23.4 billion (FY 2013 estimate)
Spending % Change:  Green Arrow Up Darker.svg0.36%[2]
% from Federal Funding:  34.71%
State Debt:  $24,972,461,000
Per Capita State Debt:  $13,459
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This page contains information about budget processes and policy issues in West Virginia, including:
  • A summary of the budget drafting process
  • Trends in expenditures and revenues
  • Current and past fiscal year budget developments
  • Financial transparency measures

Between fiscal year 2009 and fiscal year 2013, West Virginia's total expenditures increased by approximately $3 billion, from $20.4 billion in 2009 to $23.4 billion in 2013. This represents a 12.8 percent increase, outpacing the cumulative rate of inflation during the same period (9.06 percent, calculated using the Consumer Price Indices for January 2009 and January 2013).[3][4]

Budget process

The state operates on an annual budget cycle. The sequence of key events in the budget process is as follows:[5][6]

  1. Budget instruction guidelines are sent to state agencies in July.
  2. State agencies submit budget requests in September.
  3. Agency hearings are held in October and November.
  4. The governor submits his or her proposed budget to the West Virginia State Legislature on or before the second Wednesday in January.
  5. The legislature adopts a budget in March or April. A simple majority is required to pass a budget.

In West Virginia, the governor has line item veto, item veto of appropriations and item veto of selected words authority.[6]

The West Virginia State Legislature is constitutionally required to pass a balanced budget. The budget must be balanced before the governor can sign it into law.[6]

Expenditures

Definitions

Although each state executes its budget process differently, the National Association of State Budget Officers (NASBO) breaks down state expenditures into four general categories. This allows for comparisons among the 50 states. NASBO's categories are as follows:[7]

  • General fund: "The predominant fund for financing a state’s operations. Revenues are received from broad-based state taxes. However, there are differences in how specific functions are financed from state to state."
  • Other funds: "Expenditures from revenue sources that are restricted by law for particular governmental functions or activities. For example, a gasoline tax dedicated to a highway trust fund would appear in the “Other funds” column. For Medicaid, other state funds include provider taxes, fees, donations, assessments, and local funds."
  • Federal funds: "Funds received directly from the federal government."
  • Bonds: "Expenditures from the sale of bonds, generally for capital projects."

2013 expenditures

Breakdown of expenditures in FY 2013.
Source: National Association of State Budget Officers

The table below breaks down expenditures for fiscal year 2013 (comparable figures from surrounding states are provided to give additional context).[7] Figures for all columns except "Per capita expenditures" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita expenditures" have not been abbreviated.

Total state expenditures, FY 2013 ($ in millions)[7]
State General fund Federal funds Other funds Bonds Total Per capita expenditures**
West Virginia $4,159 $4,394 $14,736 $74 $23,363 $12,599.34
Kentucky $9,426 $8,001 $8,246 $0 $25,673 $5,841.02
North Carolina $20,602 $17,459 $12,543 $785 $51,389 $5,218.19
Tennessee $12,622 $13,055 $5,394 $382 $31,453 $4,841.92
Virginia $17,691 $9,546 $16,191 $1,167 $44,595 $5,398.65
**Per capita figures are calculated by taking the state's total expenditures and dividing by the number of state residents according to United States Census estimates.[8][9]
Source: National Association of State Budget Officers

Expenditures by function

Breakdown of expenditures by function in FY 2012.
Source: National Association of State Budget Officers

State expenditures in West Virginia can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2012 data is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percents, indicating the share of the total budget spent per category.

Expenditures by function, FY 2012 (as percents)[7]
State Elementary and secondary ed. Higher ed. Public assistance Medicaid Corrections Transportation Other
West Virginia 10.8% 14.1% 0.7% 12.7% 1.0% 5.8% 54.9%
Kentucky 19.8% 25.7% 0.9% 22.5% 2.4% 8.9% 19.8%
North Carolina 23.2% 9.0% 0.5% 24.7% 4.2% 9.9% 28.4%
Tennessee 17.7% 12.8% 0.4% 30.7% 2.7% 6.4% 29.3%
Virginia 16.0% 13.1% 0.4% 16.2% 2.9% 11.3% 40.1%
Source: National Association of State Budget Officers

Expenditure trends

From 2008 to 2012, expenditures on elementary and secondary education, public assistance, Medicaid, corrections and transportation all decreased, with expenditures on elementary and secondary education falling the most at 12.3 percent less than 2008. During that same time period, expenditures on higher education increased by 0.4 percent. The table below details changes in expenditures from 2008 to 2012.[7][10][11][12][13] Figures are rendered as percents, indicating the share of the total budget spent per category.

Expenditures from 2008 to 2012 (as percents)
Year Elementary and secondary ed. Higher ed. Public assistance Medicaid Corrections Transportation Other
2012 10.8% 14.1% 0.7% 12.7% 1.0% 5.8% 54.9%
2011 23.3% 14.2% 1.4% 23.5% 2.9% 8.3% 26.3%
2010 24.4% 13.2% 1.4% 23.0% 3.2% 9.1% 25.8%
2009 24.6% 13.3% 1.2% 21.4% 3.4% 8.0% 28.0%
2008 23.1% 13.7% 1.3% 19.6% 3.7% 8.5% 30.2%
Change in % -12.30% 0.40% -0.60% -6.90% -2.70% -2.70% 24.70%
Source: National Association of State Budget Officers

Revenues

2013 revenues

Breakdown of general fund revenue sources in FY 2013.
Source: National Association of State Budget Officers

The table below breaks down general fund revenues by source in fiscal year 2013 (comparable figures from surrounding states are also provided to give additional context).[7] Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, FY 2013 ($ in millions)[7]
State Sales tax Personal income tax Corporate income tax Gaming tax Other taxes and fees Total Per capita revenue**
West Virginia $1,197 $1,722 $249 $0 $982 $4,150 $2,238.04
Kentucky $3,022 $3,723 $401 $0 $2,202 $9,348 $2,126.82
North Carolina $5,309 $10,958 $1,192 $0 $3,100 $20,559 $2,087.62
Tennessee $6,643 $126 $1,083 $0 $3,551 $11,403 $1,755.39
Virginia $3,249 $11,093 $821 $0 $1,259 $16,421 $1,987.92
**Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates for 2013.[8]
Source: National Association of State Budget Officers

Revenue trends

The table below details the change in revenue sources in the general fund from 2009 to 2013.[7][10] Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, West Virginia ($ in millions)[7][10]
Year Sales tax Personal income tax Corporate income tax Gaming tax Other taxes and fees Total Per capita revenue**
2013 $1,197 $1,722 $249 $0 $982 $4,150 $2,238.04
2012 $1,178 $1,647 $174 $0 $1,017 $4,016 $2,163.00
2011 $1,148 $1,593 $303 $0 $1,020 $4,064 $2,190.62
2010 $1,095 $1,447 $233 $0 $983 $3,758 $2,026.81
2009 $1,110 $1,557 $270 $0 $964 $3,901 $2,143.67
Change in % 7.84% 10.60% -7.78% N/A 1.87% 6.38% 4.40%
**Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates.[8][9]
Source: National Association of State Budget Officers

State budgets by year

DocumentIcon.jpg See budget bill: H.B. 2014

Fiscal year 2014

West Virginia state budget -- 2014
West Virginia State Legislature
Text:H.B. 2014
Legislative History
Introduced:February 13, 2013
State House:April 12, 2013
Vote (lower house):85-13
State Senate:April 13, 2013
Vote (upper house):33-1
Conference:April 17, 2013
Governor:Earl Ray Tomblin
Signed:April 22, 2013

The state's FY 2014 budget was signed into law by Governor Earl Ray Tomblin on April 22, 2013.[14] A copy of the full budget bill can be found here.

Fiscal year 2013

See also: West Virginia state budget (2012-2013)

Fiscal year 2012

See also: West Virginia state budget (2011-2012)

Fiscal year 2011

See also: West Virginia state budget (2010-2011)

Fiscal year 2010

See also: West Virginia state budget (2009-2010)

Historical spending

State budget historical spending below was compiled by the National Association of State Budget Officers. Figures reflect the reported "Total Expenditures" in Table 1. Figures for all columns are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000).[7][11]

Historical state budget spending in West Virginia ($ in millions)
Fiscal year General Fund Other funds Federal funds Bonds Budget totals
Total % of Budget Total % of Budget Total % of Budget Total % of Budget
2011-2012 $4,144 19% $13,540 62.1% $4,064 18.6% $73 0.3% $21,821
2010-2011 $3,770 17.8% $12,906 60.9% $4,460 21% $62 0.3% $21,198
2009-2010 $3,704 18.2% $12,122 59.5% $4,475 22% $77 0.4% $20,378
Averages: $3,872.67 18% $12,856 61% $4,333 21% $70.667 0% $21,132.33
General Fund: The predominant fund for financing a state’s operations. Revenues are received from broad-based state taxes. However, there are differences in how specific functions are financed from state to state.
Other funds: Expenditures from revenue sources that are restricted by law for particular governmental functions or activities. For example, a gasoline tax dedicated to a highway trust fund would appear in the “Other funds” column. For Medicaid, other state funds include provider taxes, fees, donations, assessments, and local funds.
Federal funds: Funds received directly from the federal government.
Bonds: Expenditures from the sale of bonds, generally for capital projects.

State debt

According to a January 2014 report by the nonprofit organization State Budget Solutions, West Virginia had a state debt of over $24 billion. Its state debt per capita was $13,459. The report revealed that state governments faced a combined $5.1 trillion in debt, 33 percent of annual gross state product. The obligation amounts to $16,178 per capita in the nation. A bulk of the state debt -- 79 percent -- was linked to unfunded public pensions.[15][16]

Total state debt in West Virginia[17]
Type Totals U.S. rank
Total state debt $24,972,461,000 39
Per capita debt $13,459 29
State and other fund expenditures $17,684,000,000 50

Public pensions

See also: West Virginia public pensions and West Virginia public employee salaries

A 2012 report from the Pew Center on the States noted that West Virginia's pension system was funded at 58 percent at the close of fiscal year 2010, well below the 80 precent funding level experts recommend. Consequently, Pew designated the state's pension system as cause for "serious concern."[18]

The funding ratio for the state's pension system increased from 54.91 percent in fiscal year 2006 to 64.16 percent in fiscal year 2011, a 9.25 percent jump. Unfunded liabilities increased slightly in the same period, from $5.36 billion in fiscal year 2006 to $5.71 billion in fiscal year 2011.

Credit ratings

States sometimes sell general obligation bonds to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). Credit rating agencies, such as Standard and Poor's, assign grades to states, evaluating their ability to pay the principal and interest on such bonds. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest. Generally speaking, a higher credit ranking indicates lower risk for an investor, which in turn lowers costs for taxpayers.[19]

The table below lists the Standard and Poor's credit ranking for West Virginia from 2001 to 2012 (grades from surrounding states are provided for additional context).[19]

S&P credit ratings from 2001 to 2012
West Virginia Kentucky North Carolina Tennessee Virginia
2012 AA AA- AAA AA+ AAA
2011 AA AA- AAA AA+ AAA
2010 AA AA- AAA AA+ AAA
2009 AA AA- AAA AA+ AAA
2008 AA- AA- AAA AA+ AAA
2007 AA- AA- AAA AA+ AAA
2006 AA- AA- AAA AA+ AAA
2005 AA- AA- AAA AA AAA
2004 AA- AA- AAA AA AAA
2003 AA- AA- AAA AA AAA
2002 AA- AA- AAA AA AAA
2001 AA- AA AAA AA AAA

Federal aid to state budget

See also: Federal aid to budgets in the 50 states

The chart below notes how much of the state’s general revenues come from the federal government. Figures were calculated by dividing each state’s federal intergovernmental revenue into its general revenue. The number in the rightmost column indicates the state's ranking in relation to the rest of the nation (e.g., if "1," the state receives the highest percentage of federal funding in the nation). Figures from neighboring states are included to provide additional context.[20]

State governments receive aid from the federal government to fund a variety of joint programs, such as Medicaid. Federal aid varies considerably from state to state. For example, Mississippi received approximately $7.7 billion in federal aid in 2012, which accounted for more than 45 percent of the state's general revenues. By contrast, Alaska received roughly $2.9 billion in federal aid in 2012, just under 20 percent of the state's general revenues.[20]

Federal aid to state budgets in 2012
State Federal aid as % of general revenue Total federal aid National rank
West Virginia 34.71% $4,267,399,000 19
Kentucky 35.69% $8,056,691,000 14
North Carolina 33.24% $15,192,577,000 26
Tennessee 41.02% $11,198,575,000 3
Virginia 23.53% $9,278,113,000 48

Stimulus

West Virginia received $1.61 billion in federal stimulus spending between February 2009 and June 2013.[21]

Budget transparency

Transparency evaluation
Transparency West Virginia
Searchability Y
600px-Yes check.png
Grants Y
600px-Yes check.png
Contracts N
600px-Red x.png
Line item expenditures Y
600px-Yes check.png
Dept./agency budgets Y
600px-Yes check.png
Public employee salaries N
600px-Red x.png
Last evaluated in 2010.
See also: Evaluation of West Virginia state website and Constitutional provisions regarding reading of bills

As of 2010, West Virginia had limited transparency. The West Virginia State Legislature website posted information about state grant awards here but during the 2009 legislative session, they did not pass "The Budget & Spending Transparency Act," which would have created greater spending transparency.[22]

Government tools

The table to the right is helpful in evaluating the level of transparency provided by Transparency West Virginia.

Independent transparency sites

West Virginia University students compiled a report finding that the state was a "laggard" in the area of budget transparency and made recommendations for increased transparency, including:[23]

  • Budget requests and presentations from all state agencies, boards and commissions should be available online.
  • Common standards should be set for agency disclosures across the state government to make sure that information is available to the public in an easy-to-find manner.
  • Online public disclosure standards of other states with high marks for transparency and accountability should be copied and set for West Virginia.

Multi-measure budget transparency profile

The Institute of Government and Public Affairs at the University of West Virginia created a multi-measure transparency profile for West Virginia, which measured state transparency as of September 2011 using indicators from a range of organizations. These indicators measured both website transparency and other recognized facets of governmental transparency. In addition, IGPA presented four unique indicators of non-transparency based on the observation that transfers or reassignments between general and special funds can obscure the true fiscal condition of a state.[24][25]

IGPA devised a budget transparency index based on information available from the National Association of State Budget Officers. West Virginia tied for eighth in the nation with 11 other states, earning six out of eight possible points.[25]

West Virginia - IGPA score for budget process, contents and disclosure
Budget transparency indicator Yes or no?
Performance measures
{{{1}}}
"Generally Accepted Accounting Principles" budget N
600px-Red x.png
Multi-year forecasting
{{{1}}}
Annual cycle
{{{1}}}
Binding revenue forecast N
600px-Red x.png
Legislative revenue forecast
{{{1}}}
Non-partisan staff
{{{1}}}
Constitution or statutory tax/spend limitations
{{{1}}}
TOTAL 6

In addition to the individual state profile, IGPA offers a 50-state comparison and profiles for other states.[25]

U.S. PIRG "Following the Money" report

See also: Following the Money 2014 Report

The U.S. Public Interest Research Group, a consumer-focused nonprofit organization based in Washington, D.C., released its annual report on state transparency websites in April 2014. The report, entitled "Following the Money," measured how transparent and accountable state websites are with regard to state government spending.[26] According to the report, West Virginia received a grade of C and a numerical score of 72, indicating that West Virginia was "middling" in terms of transparency regarding state spending.[26]

Accounting principles

See also: West Virginia government accounting principles

The West Virginia State Auditor is responsible for examining state and local governments and school boards as well as paying all the state's bills.

Contact information

WV State Budget Office
Department of Revenue
Building 1, Room W-310
State Capitol Complex
Charleston, WV 25305-0171
Phone: 304-558-0040
Fax: 304-558-1588
http://www.budget.wv.gov/

See also

External links

Additional reading

References

  1. Refers to General Fund spending. Typically in state budgets the General Fund is spending that is most directly controlled by state legislators.
  2. This figure is derived by calculating the percent difference between the prior two years' spending levels according to the National Association of State Budget Officers.
  3. Bureau of Labor Statistics, "CPI Detailed Report Data for February 2014," accessed April 9, 2014
  4. InflationData.com, "Cumulative Inflation Calculator," February 28, 2014
  5. National Conference of State Legislatures, "State Experiences with Annual and Biennial Budgeting," updated April 2011
  6. 6.0 6.1 6.2 National Association of State Budget Officers, "Budget Processes in the States, Summer 2008," accessed February 21, 2014
  7. 7.0 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 National Association of State Budget Officers "State Expenditure Report, 2011-2013," accessed February 21, 2014
  8. 8.0 8.1 8.2 United States Census Bureau, "Annual Estimates of the Resident Population: April 1, 2010 to July 1, 2013," accessed February 26, 2014
  9. 9.0 9.1 United States Census Bureau, "Vintage 2009: Annual Population Estimates," accessed February 26, 2014
  10. 10.0 10.1 10.2 National Association of State Budget Officers, "State Expenditure Report, 2009-2011," accessed February 24, 2014
  11. 11.0 11.1 National Association of State Budget Officers, "State Expenditures Report, 2010-2012," accessed February 24, 2014
  12. National Association of State Budget Officers, "State Expenditure Report, 2009," accessed February 24, 2014
  13. National Association of State Budget Officers, "State Expenditure Report, 2008," accessed February 24, 2014
  14. West Virginia State Legislature, "House Bill 2014," accessed May 6, 2014
  15. State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
  16. Washington Examiner, "EXography: Unfunded public employee pensions drive state debts skyward," January 21, 2014
  17. State Budget Solutions "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
  18. Pew Center on the States "Widening Gap Update: West Virginia," June 18, 2012
  19. 19.0 19.1 Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2012," July 13, 2012
  20. 20.0 20.1 United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014
  21. Recovery.gov, "Stimulus Spending by State," accessed February 21, 2014
  22. West Virginia Republican Party, "Delegate Sobonya's guest editorial submitted to herald dispatch/wayne co. news," June 17, 2009
  23. West Virginia Univeristy, "Accountability and Transparency in the West Virginia Budget Process: Moving West Virginia from Laggard to Pace Setter," September 2010
  24. Institute of Government and Public Affairs at University of West Virginia, "Home page," accessed February 21, 2014
  25. 25.0 25.1 25.2 Institute of Government and Public Affairs at University of West Virginia, "Budget Transparency Profiles - All 50 States," September 2011
  26. 26.0 26.1 U.S. Public Interest Research Group, "Following the Money 2014 Report," accessed April 15, 2014