House Finance Chairman Vernon Criss, R-Wood, addresses the House of Delegates on Oct. 8, 2024, during debate of the proposed 2% cut to the state’s personal income tax. (Perry Bennett | West Virginia Legislative Photography)
The House of Delegates approved Gov. Jim Justice’s plan for a 2% cut to the state’s personal income tax on Tuesday despite concerns over using money from the state’s three health agencies to pay for it. The bill will head to the governor’s desk.
There is already a 4% personal income tax cut going into effect in January 2025 because the state hit an economic trigger. The additional 2% cut would also go into effect in January. Some lawmakers said it would equate to around $200 a year for the average West Virginia family.
“Even a little bit is meaningful. A gallon of milk helps families,” said Del. Larry Kump, R-Berkeley. “Anything we do to reduce the tax burden on our families is a good thing.”
The tax cut will cost $46 million to implement, and more than half of it will be paid for through around $27 million in what the Justice administration said were available funds from the Departments of Human Services, Health and Health Facilities. Lawmakers created the departments last year after they split up the former state Department of Health and Human Resources.
“That was one of the reasons that we did the split up of DHHR was to reduce overhead costs and they’ve started to realize their savings,” House Finance Chairman Vernon Criss, R-Wood, told House members. “There are more cost savings there than we had intended to see when we did that. That’s a good thing.”
House Democrats raised a round of concerns about the Justice administration seemingly “found” $27 million in health department budgets.” Human Services leaders told lawmakers in April that they needed $23 million to pay for the state’s child care subsidy program; the agency is currently using Temporary Assistance for Needy Families funds to cover the cost.
W.Va. House Minority Leader Del. Sean Hornbuckle, D-Cabell
During bill debate, Democrats cited nearly 6,000 children in foster care, some living in hotels, and thousands of grandparents raising grandkids as reasons to scrutinize potentially using DoHS funds to afford the tax cut.
Lawmakers didn’t have details of where exactly the $27 would come from. Spokespersons for DoHS, the Department of Health Facilities and Department of Health didn’t respond to an email from West Virginia Watch seeking those details.
House Minority Leader Sean Hornbuckle noted that the bill, a priority for Justice during the special session, was coming less than a month from an election. Justice is running for the U.S. Senate; all House members seeking reelection are on the November ballot.
“I implore you to step away from politics and let’s talk about policy,” said Hornbukle, D-Cabell. “We know that this tax cut that it’s not very meaningful … the policy of it is that it’s taking money away from children.”
Del. Mike Pushkin, D-Kanawha, attempted to amend the legislation to say that the 2% tax cut would not go into effect until DoHS had successfully placed every child in a home-like setting within 30 days of the state being awarded custody. Additionally, it would have required DoHS to remove all foster children from hotel rooms and other temporary locations within 30 days.
“When we’re talking about taking money from the Department of Human Services, you’re reducing the funds it takes to find placement for these kids,” he said. The amendment failed.
The Senate signed off on the tax cut legislation on Monday — $19 million of it will be paid for by a revenue bond that’s about to be paid off.
Justice had originally requested a 5% income tax reduction, but lawmakers’ concerns over the budget had made it questionable if it would pass. On Monday, the governor reduced his request down to 2%.
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