Solve West Virginia’s Budget Crisis!
Your assignment is to close a budget gap of $500 million for fiscal year 2018. The choices offered below are based on specific proposals by government officials, state agencies, and independent experts
HIGHER EDUCATION PROGRAMS
including WVU Parkersburg, Bridgevalley, and Pierpont Community Colleges. Approximately 378 FTE employees are supported with these funds.
Concord University, Bluefield State College, Fairmont State University, West Liberty University, WV School of Osteopathic Medicine, Glenville State, and Fairmont State University. Approximately 709 FTE employees are supported with these funds.
(HEAPS) that provides financial aid to part-time students enrolling in post-secondary education and those seeking a postsecondary certificate, credential or skill development program in a high-demand occupation. Approximately 4,400 lose state grant.(Source: WV HEPC)
that provides on average $2,100 per student in need-based financial aid to degree-seeking residents of West Virginia. Approximately 19,000 students lose grants.(Source: WV HEPC)
that provides a merit-based annual award of up to $4,750 to recent West Virginia high school graduates that attend in-state public colleges and universities. Approximately 10,000 students lose scholarships.(Source: WV HEPC)
HEALTH & HUMAN SERVICES
that provides funding for local public health departments to provide services such as vaccinations and health inspections. State revenue accounts for 37% of local Boards of Health funding.
which provide medical, dental, pharmaceutical, and health education services to the uninsured, underinsured, and medically underserved low-income adults.
which would requiring laying off 805 teachers and 495 service workers.
which would requiring laying off 1,369 teachers and 841 service workers.
which would requiring laying off 1,825 teachers and 1,121 service workers
181 FTE employees are supported with these funds.
which includes funding for the Division of Culture and History’ the Library Commission, the Educational Broadcasting Authority, and the Division of Rehabilitation Services. 435 FTE employees are supported with these funds.
Other Budget Cuts
Approximately 37 FTE employees are supported with these funds.
which includes funding for the Divisions of Tourism, Forestry, Labor, Natural Resources, Miners Health Safety and Training, and Energy, the Geological and Economic Survey, the West Virginia Development Office, and Workforce West Virginia. Approximately 980 FTE employees are supported with these funds.
Approximately 200 FTE employees are supported by these funds.
SALES TAX REVENUE OPTIONS
including cell phone, telephone, and some ancillary services.
West Virginia’s sales tax currently excludes some downloadable digital goods (e.g. books, movies, and other digital products) and some personal services (e.g. barbershops, beauty and nails salons, massage and tattoo parlors, and private fitness centers).(Source: WV Tax Department)
$98 million(Source: WV Tax Department)
West Virginia’s sales tax is relatively low in comparison to its neighbors. Legislators could look at raising the state’s sales tax from 6 percent to 6.5 or 7 percent.(Source: WV Tax Department)
The sales tax on food for home consumption was phased out between 2005 and 2013.(Source: WV Tax Department)
SIN & SEVERANCE TAX REVENUE OPTIONS
West Virginia currently taxes bottled soft drinks 1 cent per 16.9 ounces.(Source: Rudd Center UCONN)
West Virginia taxes tobacco products at a lower rate than most states. Raising the tobacco tax would help the state address its unhealthy workforce while generating much-needed revenue.(Source: WV Tax Department)
$15 million(Source: WVCBP estimates of WV Tax Department data)
Increase the beer barrel tax from to $11.00 per barrel from $5.50 per barrel, increase the per liter wine excise tax to 26.4 cents from 13.2 cents, and raise the wholesale mark-up on liquor products to generate $6.5 million.(Source: WV Tax Department)
from its current rate of 5 percent.(Source: WVCBP estimates of WV Tax Department data)
INCOME & BUSINESS TAX REVENUE OPTIONS
The effective income tax rate on households between $200,000 and $300,000 is 5.8% and 6.3% above $300,000.(Source: ITEP)
Between 2007 and 2015, the rate was lowered from 9 percent to 6.5 percent.(Source: WV Tax Department)
Between 2007 and 2015 the business franchise tax rate phased out from 0.70 percent to 0 percent.(Source: WV Tax Department data)
First enacted in 1904, West Virginia’s estate tax effectively ended in 2005 when the state did not decouple from the federal estate tax changes.(Source: WVCBP estimates of WV Tax Department data)
West Virginians are provided a $2,000 personal exemption from their state income tax for each household member whether their income is $15,000 or $15 million.(Source: ITEP)