Sometime this fall - probably in October - the federal government will reach its borrowing limit and we are likely to witness another fierce debate about federal debt and deficit spending. Often in these debates, pundits and others make the claim that since households have to balance their budgets, the federal government should do the…
Tax and Budget
West Virginia could gain $1.2 million in state and local tax revenue each year if Congress passes immigration reform, allowing undocumented immigrants now living in the United States to live here legally, according to a new report from the Institute on Taxation and Economic Policy. While the likelihood of immigration reform is currently up in…
Over the last several years, West Virginia has reduced its two main business taxes on the promise that it will boost revenue and jobs. As recent budget cuts show, there is little evidence that cuts to the corporate net income and business franchise tax have "broadened the base" or led to significant job gains. In…
by Chris Nyden On Tuesday, the West Virginia Higher Education Policy Commission (HEPC) approved an increase in average tuition for West Virginia public college students from $5,687 to $6,067. These increases were partly a result of a $30 million budget cut to higher education in the FY 2014 budget. This is just the second time…
The Spring 2013 Fiscal Survey of the States has been released by the National Association of State Budget Officers. The report is chock full of budget information for all 50 states, including spending and revenue levels, forecasts, and a Medicaid outlook. The overall takeaway from the report is that most states are starting to be…
Earlier this month, the Congressional Budget Office released its latest budget update. According to the CBO, the federal budget deficit is falling, and falling fast. The federal deficit is estimated to be $642 billion this year, its smallest amount since 2008. That will be about 4.0% of GDP, compared to 10.1% in 2009. Projected deficits…
Last week, the West Virginia Economic Development Authority authorized $150 million in bonds that will be used to purchase equipment for the Gestamp stamping plant in South Charleston over the next five years. The Development Authority will purchase the equipment needed for the stamping plant and lease it back to Gestamp, which allows Gestamp to…
Back when we released our report on the FY 2013 budget, we warned that the budget cuts targeting higher education would likely lead to higher tuition, making a college education even less affordable. And it didn't take long for our prediction to come true, as this week New River Community and Technical College and Marshall University both…
Late last week, the governor vetoed several pieces of legislation. Meanwhile, for the first time in several years, he did not issue any budget vetoes. As Sean and I pointed out here, the governor in West Virginia has extraordinary power compared to other states. In fact, the people of the state grant West Virginia's governor…
It's become a part-time hobby of mine to debunk the various "business climate" indexes, showing that they have little to do with actual economic health and performance (see here, here, here, here, here, here and here). These indexes typically operate in an evidence free zone, invariably tell West Virginia that we need to cut taxes,…