During his Wednesday, Sept. 4, 2024, administrative briefing, Gov. Jim Justice said that he plans to call a special session of the West Virginia Legislature later this month to consider child care and an income tax cut. (Screenshot from Gov. Jim Justice’s briefing)
Gov. Jim Justice on Wednesday said he’ll call lawmakers in for a special legislative session later this month.
The announcement during the governor’s virtual press briefing was a surprise to lawmakers, many of whom haven’t been keen on Justice’s ideas for the income tax cut. The governor said he’d also like to address the state’s child care problems.
Justice said he is giving lawmakers until Monday to “come to a resolution” on the issues.
“The Legislature, truly we’ve had plenty of time … to work out our differences in regards to a potential tax cut, whatever it may be that’s going to be on the call whether it be day care or another 5% tax cut, or a tax cut,” Justice said. “We’ve had plenty of time to craft some sort of additional tax cut.”
He’s expected to announce more details on Monday about the special session.
“Our people don’t deserve kicking the can,” he said.
Justice, who is running for U.S. Senate, has been pushing to lower the state income tax by 5%.
Senate Finance Chairman Eric Tarr, R-Putnam, said that lawmakers hadn’t yet seen any plans from Justice, but the proposal could face opposition in the Legislature.
“He’s not presented anything to us,” he said. “It’s just a matter of having the money … If we can reduce our future spending obligations to a spot where we can replace those spends with a tax cut, then I think the Senate would be there.”
His administration announced Monday that August state revenue collections were at $398.1 million, down $10.9 million below estimates. The year to date collections of $726.3 million are $13.1 million below estimates.
W.Va. House Minority Leader Del. Sean Hornbuckle, D-Cabell
House Minority Leader Sean Hornbuckle, D-Cabell, said August legislative interim meetings regarding finances led him to believe that lawmakers shouldn’t consider cutting the state income tax at this time.
“I am fearful that we are setting ourselves up for a fiscal cliff in a few years,” he said. “I appreciate wanting to help out taxpayers more, but I think it could be fiscally irresponsible to look at this point.”
Justice focused on the state’s millions in surplus funds, saying that “hoarding” the money for “pet projects” wasn’t a good idea.
“I don’t really believe in my heart that everybody wants to do that,” he said. “Let’s come up with something that is genuinely good for our people, especially at a time when absolutely this inflation is eating everybody’s lunch. We all know what it’s like at the gas pump. We all know what it’s like at the grocery stores.”
Spokespeople for both chambers of the Legislature said Senate President Craig Blair, R-Berkeley, and House Speaker Roger Hanshaw, R-Clay, did not have advance knowledge of Justice’s plan for a special session. Lawmakers have regular interim meetings planned for Sunday through Tuesday in Parkersburg.
Special session likely to include child care, details pending
Justice didn’t give details on what child care-focused bills that lawmakers could consider in a special session this month.
West Virginia needs more than 20,000 child care spots, and the governor focused on the high cost of care, noting many families were paying $600 to $700 a month.
Additionally, Justice — along with the state’s Chamber of Commerce — have tied West Virginia’s child care desert to the state’s chronically-low workforce participation rate.
“I think it’s a major problem,” said Justice in response to a question from MetroNews reporter Brad McElhinny. “At the end of the day we have to have workers — workers have to be young people and young people have kids.”
After the Legislature failed to consider a bundle of child care-focused bills during the regular session, it emerged as a key issue this summer as the state faced at least a $34 million shortfall for child care subsidies. The state program pays child care centers that serve thousands of low-income children.
The Department of Human Services is using emergency funds to cover the gap. The money could expire before the end of the year, potentially bumping thousands of kids from eligibility.
Additionally, child care providers said the subsidy amount is inadequate, which has led to more than 60 providers closing their doors this summer.
The governor has been pushing his idea for a Child and Dependent Care Tax Credit, which would allow 16,300 eligible families to claim up to 50% of the allowable federal tax credit.
The tax credit wouldn’t address the ongoing problems raised by providers amid the closings.
Tarr doesn’t like the idea of a tax credit, and said, in general, that the state’s child care issues are too complex for what would likely be a few days of a special session in Charleston.
“This requires a lot of more work than can happen in a special session … it needs to be discussed in committees and in caucus,” he said.
Tarr added that DoHS has spent $60 million annually on child care subsidies since 2020 while the labor force participation rate has remained low. He’d like to know more about how DoHS is spending the funds and what outcomes they’re measuring with the state’s investment.
“There’s a lot of things we haven’t been able to nail down as far as what we spend and how and where,” he said. “We haven’t come to a consensus about what we should be subsidizing in child care.”
Child care providers have asked lawmakers and DoHS leaders to address the funding issues, warning that the financial uncertainty will only cause more providers to close before the end of the year.
Hornbuckle said child care is a priority and that any effort to address the problem should include experts, like providers.
“Regardless of what party or what chamber, to not have people who are well-educated on this matter … I’m not sure we’re going to get the optimal result for parents and providers,” he said. “We need to make sure it’s an efficient use of dollars.”
He also called on Justice to prioritize addressing the state’s rising utility rates. Customers of American Electric Power have experienced a 32% increase in rates since May 2019, and the company is seeking another increase that would add $28.72 on to the average homeowner’s bill.
“We have bigger issues for all West Virginians — not just the 1%,” Hornbuckle said.
Editor’s note: This story has been updated to include quotes from House Minority Leader Sean Hornbuckle, D-Cabell.
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