HB 2014, Governor Morrisey’s “Certified Microgrid Program” legislation, remains under consideration by the West Virginia Legislature. The bill would take local control from counties and municipalities to enforce their own ordinances while diverting millions in property tax dollars generated from High Imact Data Centers. Instead of staying in the community to fund schools, public safety, and other local public services, HB 2014 would divert the data centers’ property tax revenues to the state to fund tax cuts that primarily benefit wealthy households and to prop up aging coal and natural gas plants instead.
A pending committee substitute of HB 2014 in the Senate Economic Development Committee changed the allocation of funds once the data center property tax dollars are sent to the state, adding a provision that will send 30 percent of the funding back to the county in which the data center is located, but still diverting 70 percent of the property tax revenue generated to state priorities.
The new fund distribution is as follows:
The largest portion, which would go into a newly created “Personal Income Tax Reduction Fund,” would be applied to the formula that determines whether state revenues hit a “trigger” threshold to reduce the state’s personal income tax, meaning that local property tax revenue that is meant for schools and local public services will instead be used to provide tax cuts that overwhelmingly benefit the state’s wealthiest households. In addition, diverting local school tax revenue would not be cost neutral to the state. Under normal circumstances, increases in local school tax revenue increase the local share in the school aid formula, and reduce the state’s share, meaning the state saves money when local property taxes increase. Under HB 2014, the state would not realize those savings through the school aid formula.
HB 2014 Could Divert Millions of Dollars in School District, Local Government Funding for Each Data Center: Hypothetical Scenarios
Using the hypothetical example of a $1 billion High Impact Data Center locating on $2 million of existing property in Man, Logan County, $7.3 million in property tax revenue would be lost by Man ($2.0 million), Logan County ($2.0 million), and Logan County Schools ($3.3 million), after the 30 percent is sent back the the local governments. Without HB 2014, if the hypothetical data center located in Man, the municipality, county, and school district would get to keep all of the property tax revenue.
As another example, let’s look at Berkeley County and the municipality of Martinsburg, with another hypothetical $1 billion data center investment on an unimproved property worth $2 million. HB 2014 would take $2.2 million away from Berkeley County, $2.0 million away from Martinsburg, and $3.3 million away from the county school district, for a total of $7.5 million lost by local governments and schools, after the 30 percent is sent back to the local governments.
While some of the school districts’ lost revenue could be expected to be made up through the state aid formula, the revenue for the counties and municipalities would likely be unrecoverable, as local governments have few mechanisms for raising revenue outside of the property tax. And while county and local governments would lose the tax revenue, they’d still be on the hook for providing the additional local public services associated with the data center, including police and fire response, maintenance of roads and other infrastructure, and costs associated with any population growth.
A Real Example in Tucker County
Recent reporting from Tucker County uncovered plans for a self-contained power plant and data center there. While there is little information publicly available about the project, the company heading it up, or the expected investment, we can again estimate the hypothetical impact on property tax revenue from a $1 billion investment, assuming the property’s unimproved value is $2 million. Under HB 2014, a $1 billion investment would result in $2.1 million lost by the county and $3.2 million lost by the school district for a total of $5.4 million in lost property tax revenue, after the 30 percent is sent back to local governments.
According to local coverage, “local officials and environmental groups expressed concerns about the potential for significant air, water, and light pollution.” Despite that, HB 2014 preempts counties and municipalities from enacting, adopting, implementing, or even enforcing existing ordinances, regulations, or rules that limit the data center; exempts the data center from any zoning, building permitting, or license requirements; and says microgrid districts and data centers are not subject to any “legal jurisdiction” of the county or municipality in which they are located.
Urge Lawmakers to Reject HB 2014
Rather than ensuring that new data center investments locating in West Virginia deliver broad benefits to our population, HB 2014 diverts existing property tax revenues to fund tax cuts that overwhelmingly benefit the state’s wealthiest households while undermining a critical revenue source for public schools and local public services. Without HB 2014, High Impact Data Centers still have the same incentives to locate in West Virginia and schools and local governments will not have to forfeit critical local revenue.
Take action now and use our formto encourage your state Senators to protect local control and local funding for schools, public safety, and other local services by rejecting HB 2014.
Read Sean and Kelly’s full blog post.
Public education is funded by a combination of federal, state, and local sources. In West Virginia, state and local funding make up 8 in every 10 dollars that fund public education. This critical state and local funding supports essential costs for the continued operation of schools. The Public School Support Program, also known as the school funding formula, determines the cost of providing education based on the cost of resources (e.g., staffing, transportation, operations and maintenance, instructional programs and technology, professional growth) and according to the number of students enrolled in the school district.
This is called a resource-based formula, meaning the state develops a total funding amount for each school district based on assumptions about how many teachers and other staff a district might need, and how much money those staff should earn, given the number and type of students they serve. About one-third of states use a resource-based formula, while others use student- or program-based formulas (or a hybrid of the three). Student-based funding formulas weight for the number of students along with the types of students, often providing extra resources for high-needs students.
West Virginia’s funding formula also determines what portion of funding comes from the state compared to local sources. The share of state versus local funding varies widely across school districts, with wealthier districts often able to fund their school districts to a higher level compared to other districts. This contributes to funding disparities within and between school districts that can lead to disparities in student experiences and outcomes. West Virginia is one of only a few states that does not have a step in its formula to account for high-poverty in a district. This is one of several areas where the formula can be modified to prevent these disparities and address the needs of students. Read our full fact sheet on the school funding formula here.
Read Tamaya’s full blog post.
West Virginia public schools are facing growing challenges of disinvestment of funding and resources, a declining education workforce, and decreased student enrollment resulting in school consolidations and closures. These challenges have amounted to more than 50 schools closing in the past five years, with 25 more proposed or approved for closure this school year alone. Randolph County narrowly prevented the closure of two schools in their community, but they are still facing a significant budget gap.
As the largest county in the state by geography, Randolph County has more than double the land area of the majority of counties in our state. This county faces unique obstacles due to its size and rurality. Research shows that compared to urban school districts, rural school districts are less able to offer broad curriculum options, fill open positions, and retain teaching staff. Transportation also poses a higher cost in these districts because students in rural areas are more likely to live farther from schools. Additionally, rural school districts serve fewer students and are less able to spread out the costs for services across students compared to urban school districts. Nearly half of the children in Randolph County public schools are from lower income families. Evidence suggests that children experiencing poverty often require more resources to achieve the same outcomes as students from higher income families. Due to these obstacles, federal and state funding is especially beneficial to these school districts and the students that they serve.
After several months of community discussion and deliberation, the Randolph County board of education and superintendent reversed course on the closure of the Harman and Pickens Schools. The superintendent noted that due to declining enrollment and the loss of pandemic-era federal relief funds, the district is facing a budget shortfall of almost $2 million. Statewide, student enrollment has declined by about 4.5 percent over the past five years, but Randolph County lost almost 8 percent of their overall student enrollment over that same period. The decline was particularly dramatic at the Pickens and Harman Schools, which lost 12 percent and 32 percent of their student enrollment, respectively.
The loss of over 100 students across the school district from the 2022-2023 school year to the 2023-2024 school year amounted to a reduction of more than $600,000 in state funding in the 2024-2025 school year for essential costs like staffing, operations, and transportation for public schools in Randolph County. The Hope Scholarship is a significant contributor to the enrollment decline in this community. Forty-three students in Randolph County utilized voucher funds last school year, which was more than triple the amount that participated the previous year. According to the WVCBP’s analysis, more than half of the students lost were attributable to the Hope Scholarship. The impact of this program on community schools is only expected to grow once the program expands to all school-aged children in 2026.
Although community members prevented the closures of the Harman and Pickens Schools, there are still considerable challenges for public education in Randolph County. There were more than 50 reduction in force (RIF) hearings in March for potential employee transfers and terminations throughout the school district. The superintendent stated that even if all proposed positions are cut, there could still be an $800,000 budget deficit for the district and a returning risk of school closure or consolidation. Over 40 critical positions remain in jeopardy including counselors, social workers, special education teachers, and teachers across grade levels and subject areas like science, social studies, math, business, art, music, and health.
With the state budget for the next fiscal year still under consideration and major changes to the federal education landscape on the horizon, the financial future for Randolph County’s public schools and those in many other rural and high-poverty districts is unclear. While state funding makes up the majority of education funding in Randolph County, federal funding supplies about 10 percent of the district budget. Federal funding supports a wide range of programs including those for students with disabilities, school meals, and students from low-income families that otherwise could not be funded without increased effort from state and local governments.
State and local funding provides for essential costs like employee salaries and benefits, operating and transportation costs, and instructional programs based on student enrollment via the school funding formula. This formula doesn’t sufficiently meet the current needs of schools across the state and incentivizes school districts to terminate staff or close schools to reduce costs and remain operational. While lawmakers and members of the public have made clear that more resources are necessary to ensure our schools have the staffing and services they need, the rapidly growing Hope Scholarship Program—which is expected to cost over $300 million in 2026—is diverting significant amounts of money that could otherwise be invested in our public schools.
West Virginia’s state constitution guarantees that the legislature will provide for a thorough and efficient system of free schools. However, outdated and inequitable funding practices through the school funding formula and Hope Scholarship put this promise at risk. To preserve community schools and protect the future of the Mountain State, the funding formula must be modified and the Hope Scholarship Program curtailed.
Read Tamaya’s full blog post.
Summer Policy Institute 2025 is almost here! SPI is a convening focused on policy, where participants learn the ins and outs of policy change, as well as crucial skills rooted in community engagement and grassroots mobilization. SPI brings together highly qualified traditional and non-traditional undergraduate students, graduate students, and policy-curious people of all ages to build policy knowledge, leadership skills, and networks.
This year we are excited to announce Public Education as our policy focus. Attendees will learn about policy writing, research, coalition building, power mapping, and other helpful data-driven skills through the lens of public education.
Attendees will meet West Virginia leaders from government, non-profit advocacy, and grassroots organizing spaces to build relationships and networks. Throughout the convening, participants work in small teams to identify and develop policy proposals to shape the future they want to see in the Mountain State, culminating in team “policy pitches” to community leaders.
There will be full days of live content and team work from June 27–29. This year’s institute will be held at West Virginia State University. There is no cost to participate, but it is required that participants attend all sessions during the three-day convening.
You can learn more about SPI 2025 here. To apply, please complete this Google Form and submit your brief letter of interest to summerpolicyinstitute@gmail.com. The application deadline is April 25, 2025. We hope to hear from you!
Last week West Virginians sent a clear message: Don’t cut Medicaid.
In overwhelming numbers, families, advocates and health care providers turned out to reject House Bill 3518, and called on their legislators to reject this dangerous proposal that would have automatically eliminated the Medicaid expansion — and with it health care for 166,000 West Virginians — if federal funding for the program was reduced by even 1%.
While this bill was moved to the inactive calendar after swift public and lawmaker pushback, the fight isn’t over. Medicaid remains at risk — not just at the state level, but also in ongoing federal budget negotiations in Washington, D.C.
Medicaid is a lifeline for West Virginia families, seniors, people with disabilities, low-income adults and children. Today, nearly one in three West Virginians rely on Medicaid for their health care. Cuts to the program would mean fewer doctor visits, fewer life-saving prescriptions, and more families forced to choose between paying rent and affording care. For providers, it would mean more uncompensated care, lower reimbursements, job losses and potentially even closures of medical centers.
We know what happens when funding is cut. Hospitals, especially in rural areas, suffer financially. People go without care, and preventable conditions turn into medical crises. Mental health coverage and substance use treatment, care that was inaccessible to many West Virginians without Medicaid, will become harder to reach. Hospitals and providers, already operating on thin margins, will be at greater risk of closing their doors. That’s why West Virginians are speaking out, urging Sens. Shelley Moore Capito and Jim Justice, as well as Reps. Carol Miller and Riley Moore, to reject any federal budget cuts to Medicaid.
Just as HB 3518 could have ended health coverage for 166,000 people, but was described in committee as a bill that “did nothing” unless Congress took action, West Virginians must be on alert for Medicaid cuts disguised as harmless or “cutting waste,” but that have real consequences and shift costs onto states and families.
Work reporting requirements, reductions to federal matching rates, and other changes that impact Medicaid financing mechanisms all shift Medicaid costs onto the state budget, where state lawmakers have warned they will not fill the gap. If these changes are enacted, the loss of Medicaid funding will result in cuts to enrollment, fewer services covered, reduced reimbursements to providers, or some combination of the three.
West Virginians can’t afford state or federal cuts to Medicaid. We need our congressional delegation to fight for a budget that prioritizes people — not the interests of the wealthy few. If they truly represent the interests of their constituents, they will protect Medicaid and ensure that every West Virginian, regardless of income, has access to the health care they need.
Read Alex’s full op-ed.
Take Action Today: Use our form to contact West Virginia’s congressional delegation and tell them to reject any budget proposal that cuts funding for Medicaid, SNAP, and other federal safety net programs.
The Supplemental Nutrition Assistance Program (SNAP) provides vital food assistance to more than 147,000 households throughout West Virginia, with research showing it improves health and boosts household economic security. People participating in SNAP spend about 25 percent less on health care annually than similar non-participating adults, report better health, are less likely to stay home sick, and are less likely to forego needed medical care due to the cost.
SNAP benefits are 100 percent federally funded. Each year, SNAP lifts 51,000 West Virginians above the poverty line, including 18,000 children, all while providing vital food assistance to a wide array of households including senior citizens, low-income workers, and residents with disabilities.
While SNAP dollars are modest for households (less than $6 per person per day on average) these dollars are vital for retailers, grocers, and our state’s broader economy. In 2024, SNAP brought over $500 million in federal food benefits into the state, benefiting more than 2,200 authorized West Virginia SNAP retailers. SNAP plays an important role in the food economy, particularly during economic downturns. As more households become eligible for SNAP when the economy weakens, SNAP spending increases (while other spending is often declining) which, in turn, stimulates the economy. In a weak economy, SNAP generates $1.54 in economic activity for every $1 spent on the program.
In border communities, limiting the purchases that can be made with SNAP dollars at West Virginia retailers could lead to significant federal dollars leaving the state for retailers just across the border if neighboring states do not impose such restrictions on their retailers, leaving West Virginia retailers with less business. In just a single month, SNAP transactions in West Virginia border counties totaled over $25 million.
SNAP Purchase Restrictions Do Not Address Underlying Barriers to Nutrition
The lack of accessible, affordable healthy food is not an individual issue, but a broader economic and societal one. Many rural areas lack the population base large enough to support a grocery store that stocks a variety of affordable and healthy foods. As a result, dollar stores have rapidly expanded in rural areas, which tend to offer foods higher in calories and lower in nutrients, with few fresh, healthy foods available. Dollar stores play an increasingly prominent role in food purchases for rural communities with six percent of all food spending among rural households coming from dollar stores.
Even when healthy foods are available, they can be much more costly and time-intensive to purchase and prepare. For low-income, rural households, calorically dense and “cheap” or easily accessible food can sometimes be what is available or affordable. Limiting what SNAP recipients can buy does nothing to address the broader issues of food deserts or the high cost of healthy foods, it simply punishes households for issues largely outside their control.
Instead of SNAP food restrictions, state and federal lawmakers should increase SNAP benefit levels and offer incentives to ensure households can afford more nutritious options. Investing in programs like SNAP Stretch, which double SNAP benefits when they are used to purchase fruits and vegetables at participating farmers’ markets and grocers, is a much more effective path than purchase restrictions that can increase nutrition without punishing families.
Read Seth and Kelly’s full fact sheet.
Congress is moving fast on budget plans that could put critical safety net programs—Medicaid, SNAP, and other essential services—at risk. Lawmakers in both the U.S. House and Senate are considering budget proposals that could lead to devastating cuts to the programs that thousands of West Virginians rely on for food, health care, and economic security.
These cuts would disproportionately impact families, seniors, and children in our state, threatening access to health care, food assistance, and other essential services—all to finance tax breaks for the ultra-wealthy. We can’t let this happen.
Take Action Today:Use our form to contact West Virginia’s congressional delegation and tell them to reject any budget proposal that cuts funding for Medicaid, SNAP, and other federal safety net programs. Our elected officials must prioritize the well-being of West Virginians, not corporate interests and tax breaks for billionaires.
Read Kelly’s recent statement in response to the US Senate’s budget plan released last week.
