CHARLESTON — As the clock ticks down to the end of the 2024 legislative session, lawmakers on Saturday worked to craft next year's budget, including nearly $500 million that West Virginia may have to scrap. Questions remain about pending exemptions. to education spending.
At a press conference Monday morning, House Democrats challenged Gov. Jim Justice and the Republican majority over the state's negotiations with the U.S. Department of Education to waive federal requirements to meet mandatory education spending standards. , sought answers to avoid illegal stay. Recovered more than $1.1 billion in COVID-19 education grants.
“We want answers now,” said House Minority Leader Sean Hornbuckle, D-Cabell. “West Virginians deserve to have a government that is transparent and they can trust.”
Last week, the House Finance Committee introduced its budget for fiscal year 2025, which begins in July, and it was revealed that the state is negotiating with the U.S. Department of Education for the second year in a row for fiscal year 2023. Maintenance of Effort (MOE) Waiver Requirements.
As a result of receiving more than $1.1 billion in three installments of COVID-19 education funding through the U.S. Department of Education's Elementary and Secondary School Emergency Relief Fund (ESSER), states will be able to increase their total education spending based on the following criteria: A certain percentage was required to be maintained. Spending during the three fiscal years before the pandemic began. That rate was 41.6%, but the state fell below that rate in fiscal years 2022 and 2023.
The state applied for a waiver of this requirement in 2022, explaining that the state's student aid system and the way the state funds education make it difficult to directly fund education.
Instead, states should consider how to fund education in alternative ways, including pay increases, stabilization of the Public Employees Insurance Agency, funding for deferred maintenance and new school construction, school community programs and other spending. Compliance was demonstrated by showing what was provided. The state was granted its first exemption in 2023.
However, West Virginia faces similar issues in its fiscal year 2023 report, with total education spending at just 34.7%. Unless the state receives a second waiver, West Virginia would need to spend $465 million to bring total education spending to 41.6% of the baseline. If the state doesn't do that, it could end up getting back some of the $1.1 billion the U.S. Department of Education gave West Virginia.
“This is about 10 percent of our budget,” said Representative John Williams, D-Monongalia. “We don’t know if these funds are available or if we can pay for them.”
“It's a blind spot for us. It's a blind spot for you. It's not a blind spot for those in charge. That's what it comes down to,” Hornbuckle said. “First of all, we need to figure out this mismanagement. We are really troubled by this.”
Gov. Jim Justice said in a statement over the weekend that negotiations with the U.S. Department of Education have been fruitful and he expects to receive a waiver soon. But he criticized the department for maintaining the effort provision, which won't be finalized until 2022 and penalizes the state, which ended the past two fiscal years with a tax surplus of more than $1 billion. said.
“The only question raised by the federal regulations is whether West Virginia's education spending has increased sufficiently in proportion to the state's overall spending,” the judge said. “But federal regulations are focused on percentages. Even though we are increasing investment in schools, they are increasing investment in West Virginia's economic success and roads, infrastructure, and West Virginia We are punishing the people of our state for bringing them good-paying jobs.”
While state officials remain optimistic about receiving a waiver, the news puts renewed attention on the budget, which is traditionally finalized in the last week of the session. Both House Bill 4025 and Senate Bill 200, the budget proposals, advanced to third reading in the House starting Monday with the right of amendment.
Justice's FY25 general fund budget is $5.265 billion, an increase of 7.8%, or $381 million, from the $4.884 billion FY24 budget that took effect in July. The Senate version of the proposed budget is $4.934 billion, a 1% increase from the current fiscal year but a 6.3% decrease from the attorney general's recommended budget of $5.265 billion. The House budget proposal is just over $5 billion, nearly 5% less than the governor's budget proposal and 1.4% more than the Senate budget proposal.
The judge told lawmakers that the budget should be as close to his recommended budget as possible, including a five-year pay increase for state employees, teachers, school employees and West Virginia State Police officers, as well as $150 million in grants. He called for the proposal to be passed. The School Construction Authority will fund all remaining construction requests.
“Again, I am confident that we will reach a positive solution soon, and will move quickly to implement my proposed budget, which includes historic raises for educators and unprecedented funding for the School Construction Authority.” We urge Congress to act,” the judge said. . “This is not just about meeting the federal government's expectations. It's about our continued commitment to improving education for all West Virginians.”
Congress may be poised to do just that. The House is expected to pass Senate Bill 653 today, which would provide $150 million to the SBA, but the Senate Finance Committee removed the Teachers, Employees and State Police bill from its agenda Monday afternoon.
Republican lawmakers also tried to pass a smaller budget, but will return to strengthen the budget in a special session later this spring once the waivers are approved. This plan did not sit well with Democratic minority members.
“Even if we were to go back and fix it in May, we had work to do in the last 60 days and we still haven't done it,” Williams said. “We are now in a position where we are looking for a funded budget that keeps the promises made on the first day of the State of the Union address about 55 days ago.”
House Minority Leader Kayla Young, D-Kanawha, said some of the budget priorities the governor laid out in his eighth and final State of the State address on Jan. 10, at the beginning of the 2024 legislative session, are no longer included in the budget. It pointed out. , child care tax credits, funding for a new agricultural lab at West Virginia State University Research Institute, funding for local hospitals, or funding for flood mitigation.
“We want to reinstate some of the governor's promises,” Young said. “In the last few days of this session, today being the 55th day, our caucus is absolutely committed to focusing on the people of West Virginia and putting money behind our voices. .”
Steven Allen Adams can be reached at sadams@newsandsentinel.com.
