Governor Tomblin exercised his line item veto power today, trimming over $64 million from the budget sent to him by the legislature earlier this week. While the legislature had restored many of the cuts to children and family support programs that were in the FY 2015 budget proposal, the governor vetoed that funding, keeping the cuts in place. The governor also cut funding increases for the state police and for the expansion of an in-home senior service Medicaid program.
Governor Tomblin originally called for borrowing $83 million from the Rainy Day fund, and the legislature increased that amount to $147 million in order to fund Medicaid. The governor vetoed that increase, and the final FY 2015 budget will borrow $100 million from the Rainy Day Fund for Medicaid. According to the governor’s veto letter, there will be additional funds available to appropriate to Medicaid at a later date. If this happens, it means that the Governor is really only vetoing $17 million – not the $65 million that is being reported.
Here’s how that works. In the governor’s proposed budget, Governor Tomblin appropriated $376.3 million for Medicaid through the Medical Services line item (Fund 0403, Activity 189), while transferring $83.8 million from the Rainy Day Fund into the Medicaid Trust Fund. Together, these actions provided $460.1 million for Medicaid.
In the compromise budget reached between the House and the Senate, $147.6 million was transferred from the Rainy Day Fund into the Medicaid Trust Fund, an increase of $63.7 million over the governor’s proposal. But the compromise also reduced the General Revenue appropriation for Medicaid to $312.6 million, a decrease of $63.7 million. So, like in the governor’s proposal, the two actions together provided $460.1 million for Medicaid, but the legislature’s action freed up $63.7 million in General Revenue, which they used to restore some of the governor’s proposed cuts and increase various line items.
But, the governor vetoed the $147.6 million transfer, reducing it to $100 million. But, the governor can not use the line item veto to increase an appropriation, so the General Revenue appropriation for Medicaid remains at $312.6 million, $63.7 million below the governor’s proposal. The governor could reduce the Rainy Day transfer, but he can’t reverse the Medicaid line item reduction that the Rainy Day transfer offset.
Since the vetoed transfer from the Rainy Day fund didn’t actually reduce any base budget appropriations, the Governor’s vetoes only cut $16.9 million out of the base budget ($12.6 million in General Revenue and $4.3 million in Lottery).
The $16.9 million vetoed by the governor will presumably be funneled back into Medicaid (to help make up for the general revenue line item reduction). And the governor is counting on $26 million from the “haircut bill” to appropriate to Medicaid. However, these actions will still leave Medicaid about $5 million short of the $460 million it received from General Revenue and the Rainy Day transfer in the legislature’s enrolled budget, necessitating further budget maneuvers.
The stated reason for the vetoes was to ensure that the Rainy Day Funds (Revenue Shortfall Reserve Fund A & B) did not drop below 15 percent of the budget over the next three fiscal years. Currently, the Rainy Day Funds hold “$914 million in cash” or about 21 percent of the FY 2015 general revenue fund budget.
According to the Governor’s veto letter, the budget bill passed by the legislature would grow the base-budget thereby increasing future budget gaps that would require additional revenue from the Rainy Day Fund. The projected budget gap in FY 2016 is $126 million, $44 million in FY 2017, and $0 in FY 2018. Of course, the Governor’s assumption is that the legislature would dip into the Rainy Day Fund over the next three years to fill these gaps instead of raising revenue by increasing the tobacco tax or other taxes.
Below is a list of all of the governor’s vetoes for the FY 2015 budget.
|
Agency/Department |
Line Item |
FY 2015 Enrolled |
Final With Vetoes |
Vetoed Amount |
|
General Revenue |
|
|
|
|
|
WV Development Office |
Regional Contracting Assistance Center |
$375,000 |
$208,215 |
$166,785 |
|
WV Development Office |
Local Economic Development Assistance |
$4,688,940 |
$1,850,000 |
$2,838,940 |
|
State Department of Education |
Current Expenses |
$2,797,390 |
$2,627,390 |
$170,000 |
|
State Department of Education |
21st Century Innovation Zones |
$466,144 |
$266,144 |
$200,000 |
|
State Department of Education |
21st Century Learners |
$2,187,598 |
$2,062,598 |
$125,000 |
|
Department of Education and the Arts |
Educational Enhancements |
$350,000 |
$200,000 |
$150,000 |
|
Division of Health – Central Office |
Primary Care Centers – Mortgage Finance |
$343,505 |
$229,003 |
$114,502 |
|
Division of Human Services |
Family Resource Networks |
$1,762,464 |
$1,612,000 |
$150,464 |
|
Division of Human Services |
Domestic Violence Legal Services Fund |
$400,000 |
$370,000 |
$30,000 |
|
Division of Human Services |
In-Home Family Education |
$1,000,000 |
$750,000 |
$250,000 |
|
Division of Human Services |
Grants for Licensed Domestic Violence Programs and Statewide Prevention |
$2,500,000 |
$2,142,100 |
$357,900 |
|
Division of Human Services |
Children’s Trust Fund – Transfer |
$300,000 |
$220,000 |
$80,000 |
|
Adjutant General – State Militia |
Unclassified |
$16,710,103 |
$15,524,044 |
$1,186,059 |
|
Division of Corrections – Correctional Units |
Corrections Academy |
$1,602,129 |
$1,502,129 |
$100,000 |
|
WV State Police |
Personal Services |
$59,075,965 |
$58,568,052 |
$507,913 |
|
WV State Police |
Childrens Protection Act |
$947,942 |
$935,819 |
$12,123 |
|
WV State Police |
Current Expenses |
$11,219,232 |
$10,397,784 |
$821,448 |
|
WV State Police |
Vehicle Purchase |
$2,403,790 |
$1,500,000 |
$903,790 |
|
WV State Police |
Communications and Other Equipment |
$1,338,968 |
$1,268,968 |
$70,000 |
|
WV State Police |
Trooper Retirement Fund |
$4,625,240 |
$4,586,341 |
$38,899 |
|
WV State Police |
Handgun Administration Expense |
$81,668 |
$80,420 |
$1,248 |
|
WV State Police |
Capital Outlay and Maintenance |
$314,425 |
$250,000 |
$64,425 |
|
WV State Police |
Automated Fingerprint Identification system |
$704,920 |
$671,994 |
$32,926 |
|
Division of Criminal Justice Services |
Child Advocacy Centers |
$1,702,466 |
$1,502,466 |
$200,000 |
|
Division of Criminal Justice Services |
Sexual Assault Forensic Examination Commission |
$150,000 |
$100,000 |
$50,000 |
|
Bureau of Senior Services |
Transfer to DHS for Health Care and Title XIX Waiver for Senior Citizens |
$19,457,690 |
$15,957,690 |
$3,500,000 |
|
Higher Education |
West Virginia University – Parkersburg |
$10,081,330 |
$9,858,752 |
$222,578 |
|
Higher Education |
West Virginia Advance Workforce Development |
$3,645,095 |
$3,445,095 |
$200,000 |
|
Higher Education |
West Virginia University |
$103,099,869 |
$102,999,869 |
$100,000 |
|
WV Development Office |
Regional Contracting Assistance Center |
$375,000 |
$208,215 |
$166,785 |
|
WV Development Office |
Local Economic Development Assistance |
$4,688,940 |
$1,850,000 |
$2,838,940 |
|
State Department of Education |
Current Expenses |
$2,797,390 |
$2,627,390 |
$170,000 |
|
State Department of Education |
21st Century Innovation Zones |
$466,144 |
$266,144 |
$200,000 |
|
State Department of Education |
21st Century Learners |
$2,187,598 |
$2,062,598 |
$125,000 |
|
Department of Education and the Arts |
Educational Enhancements |
$350,000 |
$200,000 |
$150,000 |
|
Division of Health – Central Office |
Primary Care Centers – Mortgage Finance |
$343,505 |
$229,003 |
$114,502 |
|
Division of Human Services |
Family Resource Networks |
$1,762,464 |
$1,612,000 |
$150,464 |
|
Division of Human Services |
Domestic Violence Legal Services Fund |
$400,000 |
$370,000 |
$30,000 |
|
Division of Human Services |
In-Home Family Education |
$1,000,000 |
$750,000 |
$250,000 |
|
Division of Human Services |
Grants for Licensed Domestic Violence Programs and Statewide Prevention |
$2,500,000 |
$2,142,100 |
$357,900 |
|
Division of Human Services |
Children’s Trust Fund – Transfer |
$300,000 |
$220,000 |
$80,000 |
|
Adjutant General – State Militia |
Unclassified |
$16,710,103 |
$15,524,044 |
$1,186,059 |
|
Division of Corrections – Correctional Units |
Corrections Academy |
$1,602,129 |
$1,502,129 |
$100,000 |
|
WV State Police |
Personal Services |
$59,075,965 |
$58,568,052 |
$507,913 |
|
WV State Police |
Childrens Protection Act |
$947,942 |
$935,819 |
$12,123 |
|
WV State Police |
Current Expenses |
$11,219,232 |
$10,397,784 |
$821,448 |
|
WV State Police |
Vehicle Purchase |
$2,403,790 |
$1,500,000 |
$903,790 |
|
WV State Police |
Communications and Other Equipment |
$1,338,968 |
$1,268,968 |
$70,000 |
|
WV State Police |
Trooper Retirement Fund |
$4,625,240 |
$4,586,341 |
$38,899 |
|
WV State Police |
Handgun Administration Expense |
$81,668 |
$80,420 |
$1,248 |
|
WV State Police |
Capital Outlay and Maintenance |
$314,425 |
$250,000 |
$64,425 |
|
WV State Police |
Automated Fingerprint Identification system |
$704,920 |
$671,994 |
$32,926 |
|
Division of Criminal Justice Services |
Child Advocacy Centers |
$1,702,466 |
$1,502,466 |
$200,000 |
|
Division of Criminal Justice Services |
Sexual Assault Forensic Examination Commission |
$150,000 |
$100,000 |
$50,000 |
|
Bureau of Senior Services |
Transfer to DHS for Health Care and Title XIX Waiver for Senior Citizens |
$19,457,690 |
$15,957,690 |
$3,500,000 |
|
Higher Education |
West Virginia University – Parkersburg |
$10,081,330 |
$9,858,752 |
$222,578 |
|
Higher Education |
West Virginia Advance Workforce Development |
$3,645,095 |
$3,445,095 |
$200,000 |
|
Higher Education |
West Virginia University |
$103,099,869 |
$102,999,869 |
$100,000 |
|
Other Revenue |
|
|
|
|
|
Revenue Shortfall Reserve Fund |
Medical Services Trust fund – transfer |
$147,552,295 |
$100,000,000 |
$47,552,295 |
|
Lottery |
|
|
|
|
|
State Department of Education |
Current Expenses |
$3,653,750 |
$1,269,375 |
$2,384,375 |
|
Library Commission -Lottery Education Fund |
Libraries – Special Projects |
$786,250 |
$0 |
$786,250 |
|
Bureau of Senior Services |
Senior Citizen Centers and Programs |
$2,284,740 |
$1,284,750 |
$999,990 |
|
Bureau of Senior Services |
In-Home Services and Nutrition for Senior Citizens |
$4,420,941 |
$4,320,941 |
$100,000 |
|
Total |
|
|
|
$64,467,910 |
