The state budget is the single most important piece of legislation enacted each year—and the only bill lawmakers are constitutionally required to pass. State legislators must use the final two weeks of the legislative session to ensure the budget process is as transparent as possible, fully fund critical safety net programs, and protect state revenues in the face of upcoming budget gaps and federal funding uncertainty.
After a flurry of movement in late February with the House and Senate passing dramatically different versions of the budget, there has been no public-facing action for a full week.
According to the West Virginia Legislature’s website, “if changes are made in a bill by the second chamber, it must be sent back to the first chamber for its concurrence. If the first chamber does not agree and the second chamber refuses to remove the changes it made, a conference committee with an equal number of representatives from both chambers is appointed… to work on differences in the bill.”
It seems likely the process of concurrence and refusal regarding the budget is taking place behind closed doors rather than in the way prescribed by the formal legislative process. West Virginians deserve transparency around the budget negotiations influencing the public services that touch all of our lives and would be better served by a negotiation process that allows us to have knowledge of what is transpiring. Legislative leadership should appoint a conference committee that meets publicly to negotiate a compromise budget.
SNAP and Medicaid are two programs that are vitally important for West Virginia families and the state economy. Last summer, Congress passed HR 1 (One Big Beautiful Bill Act), which made dramatic changes to eligibility for both programs and shifted once-federal costs onto state budgets. West Virginia lawmakers should prioritize filling the funding gaps created by Congress in order to protect these programs for the many West Virginians who rely on them and the broader economy.
As a result of HR 1, West Virginia is now responsible for a higher share of the administrative costs to run the SNAP program, which increased from 50 percent to 75 percent, or roughly $15-18 million per year in additional costs.
While the governor’s and the Senate’s budgets included the necessary additional funding for the higher administrative cost share, the House’s budget did not. If these funds are not included in the final budget, the SNAP agency will face staffing and capacity cuts at the most inopportune time possible—just as they are implementing new eligibility restrictions and changes as a result of HR 1 and when the state is on the hook for a higher SNAP benefit share if its error rate increases. SNAP worker caseloads are correlated with error rates, so any cut in the SNAP administrative budget is likely to cost the state budget more next year through a higher SNAP benefit share.[1]
Medicaid provides health coverage to around 500,000 West Virginians, helps rural hospitals and health care providers keep their doors open, and provides critical state and federal funds that directly support tens of thousands of jobs in the health care sector and beyond. Governor Morrisey’s budget fully funds Medicaid to FY 2026 levels, while the House budget cuts Medicaid fairly significantly, and the Senate budget utilizes lottery and provider tax funding to make the Medicaid budget whole.
While we were disappointed to see the governor’s budget fund a large chunk of ongoing Medicaid costs with surplus dollars, that is superior to the House’s budget which underfunds Medicaid by more than $94 million outright.[2] Cutting state Medicaid dollars would result in the state forfeiting an approximately 3:1 federal match, so the program would see losses or cuts closer to $400 million if that funding is not restored in the compromise budget.
A strong budget would fully fund these priorities in the base budget and not rely on surplus dollars.
Governor Morrisey’s six-year plan shows that the state faces a $200 million budget gap in FY 2028, growing to over $400 million by FY 2031 when comparing current budget obligations and revenue projections. That concerning reality should halt legislators from considering any tax cuts that would further erode state revenues.
But instead, the Senate has passed a $250 million personal income tax cut alongside a tax credit for coal that will cost millions of dollars in additional revenue annually. Taken together, these bills would push the FY 2028 budget gap to well above $300 million.
Similarly, the House is now considering the $250 million personal income tax cut alongside legislation to reduce the coal severance tax that would cost tens of millions of dollars annually upon full implementation.
West Virginia’s budget landscape is even more dire than what is reflected above, as the Morrisey administration’s six-year financial plan does not account for some of the coming federal cost shifts from HR 1. In FY 2028, West Virginia could be responsible for a percentage of the SNAP benefit cost, which could be as high as $84 million annually based on its error rate. Additionally, the provider tax phase-down from HR 1 will mean the state will lose tens of millions of dollars annually in provider tax revenue that either will need to be made up through the state budget or will result in major cuts to Medicaid.
From the governor’s own FY 2027 Executive Budget Six-year Financial Plan, “Using this plan, it is easy to see where the projected expenditures outpace revenues beginning in FY 2028, and it becomes obvious that any surplus revenues from upcoming fiscal years should not be expended for items that would add more obligations to the ‘base budget’ but rather should be cautiously used for one-time needs or held for use to assist in offsetting future shortfalls.”
West Virginia is in clear danger of cementing a structural budget gap, where ongoing budget costs do not fit within the general revenue estimates. The budget as it exists now falls far short of meeting recommended funding levels for public schools, child care, child welfare, and infrastructure and water needs.
If lawmakers proceed with recklessly enacting large, permanent tax cuts this year, they will make it all but impossible to make much-needed investments in SNAP, Medicaid, child welfare, our public schools, infrastructure, and a number of other pressing issues in the Mountain State.
[1] WVCBP analysis of USDA Food and Nutrition Service and West Virginia Department of Human Services data.
[2] WVCBP analysis of various budget proposals.
