FINANCE Bills addressing financial operations that emerged during the legislative session are SB 300 & HB 2026, SB 615 and HB 2152.
SB 300 & HB 2026 By James Bailey
SB 615
By James Bailey
HB 2026— SENATE: 31-1 � HOUSE: 78-18 SENATE: 34-0 � HOUSE: 98-0
West Virginia Governor Patrick Morrisey signed HB 2026, the budget bill, issuing 29 line-item vetoes that cut at least $ 37 million in spending and vetoing more than $ 110 million in surplus appropriations that would have been funded had the state finished the fiscal year with a significant surplus of revenue.
The $ 5.32 billion general revenue budget—$ 5 million less than Morrisey’ s initial proposal— includes a $ 100 million increase in funding for foster care and adoption services, $ 33 million for the Hope Scholarship and $ 33.6 million for the personal income tax reserve fund.
Morrisey cut the entire $ 75 million Economic Development Project Fund allocation, $ 10 million from the Water Development Authority, $ 250,000 from the Cabell County Commission for Lily’ s Place and $ 25 million from a $ 125 million Division of Highways surplus appropriation.
Among the $ 37 million in general and special revenue cuts, the State Road Fund saw the largest reduction. The Department of Health and Ronald McDonald House of Morgantown each lost $ 3 million, and court-appointed youth advocates lost $ 800,000. Funding for libraries, public transit and the Safe Schools program was also reduced. Programs like the Green Acres Regional Center, Mountwood Park and a nursing program at West Virginia State University lost all funding.
Morrisey said these cuts were made in anticipation of possible Medicaid and PEIA gaps and changes to the federal tax code, noting that funding could be restored at a later date.
He led the process of finalizing this year’ s budget after taking office in January, citing a roughly $ 400 million budget deficit for the upcoming fiscal year caused by the prior administration’ s use of one-time funding sources. Despite initial conflict with some legislative leaders, Morrisey and the Legislature finalized a balanced budget without needing an extended session.
The Legislature enacted SB 615, which eliminates accelerated tax payment requirements imposed on certain taxpayers for the consumer sales and use taxes as well as personal income tax withholdings submitted by employers. Currently, business entities with estimated average monthly payments exceeding $ 100,000 for each tax liability are required to submit the amount attributable to the first 15 days of June prior to the end of the month each year.
The bill, which was introduced per Morrisey’ s request, was made effective from passage by the Legislature. Therefore, the bill eliminates the accelerated tax payments that would have otherwise been due in June of this year. The Department of Revenue projects this change will create a one-time shift of approximately $ 50 million from 2025 to 2026, but that 2025 collections will be sufficient to absorb the temporary shift. This reform is a move towards modernizing state tax policies and should also reduce administrative burdens.
HB 2152
By Tristan Leavitt
SENATE: 34-0 � HOUSE: 97-0
Versions of the Prompt Payment Act have been introduced repeatedly in recent legislative sessions in response to complaints about the State of West Virginia not making obligatory payments to vendors or grantees in a consistent or timely manner. This discouraged vendors from doing business with the state, as providing services but waiting indefinitely for payment essentially results in an interestfree loan to the state.
HB 2152 mandates that when a state agency receives a legitimate claim for payment, it disburses the grant funds or processes the invoice within 10 business days. The agency then has 10 business days to process it or reject it for good cause. Altogether, the state must issue the money within 45 calendar days. The new law applies to grants awarded and purchases of commodities or services made on or after July 1, 2025. Vendors and grantees may report violations of this code section to the state auditor, and agencies must report violations they become aware of. The auditor is required to list these agencies on its website, updating the list at least monthly.
Photo by Perry Bennett, WV Legislative Photography.
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WEST VIRGINIA EXECUTIVE