State agencies are preparing to trim $100 million from current spending while also planning to carry those cuts into the coming fiscal year.
State officials have been considering those cuts for weeks and confirmed today that a current revenue slowdown means they must go ahead. West Virginia has faced slower tax collections over the past few months, particularly as energy markets have slowed.
"We like pro-active. The governor said do not wait until this becomes a big problem,” state Revenue Secretary Dave Hardy said today on MetroNews’ “Talkline.”
“If we do this and the revenues end up being higher in the spring, we’re in a much better position to go back and restore. It’s just us getting ahead of the numbers.”
State revenue has been less than anticipated the past few months as natural gas prices and markets for coal have slowed, Hardy said.
“I can summarize it in two words: severance tax,” he said.
“It’s the price of natural gas, the price of coal. When those numbers come way down, we get a percentage of the sales price. Those revenue sources are volatile and they go up and down very quickly.”