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As the state and various other governmental entities approach the end of their 2023-24 fiscal year on June 30, there has been much attention paid toward their budgets.
As our statewide reporter, Steven Allen Adams, noted in a recent article, West Virginia is on track to have a "surplus" of approximately $800 million (a sizable decrease from previous years) to start the next fiscal year on July 1. I put surplus in quotation marks because, as anyone who has paid attention to our reporting in the last few years would know, the Legislature has made a habit of setting aside a series of project and programs to fund on the backside by using those funds lawmakers actually know are coming in but don't want to commit just yet.
Any time an article about the state's budget comes out, I see residents make comments about ways these "surplus" funds should be handled, whether it's being put toward our roads, providing raises for state employees, or giving it back to the taxpayers. The reality is, most of those funds have already been allocated, just not on any official documentation.
The election is only a few months away, and, whether he wins the race for U.S. Senate or not, Jim Justice won't be returning to the governor's seat after this year. That means there is the possibility many of those in higher positions, such as crafting the state budget, also won't be there.
It will be interesting to see if there is a different approach to tracking West Virginia's revenue and expenditures under the next administration, and what it will show about the way money has been handled in recent years.
One area I'm sure will see an effect, and much sooner than we would like, is the balance of local budgets.
One benefit of the COVID pandemic (and I'm using that term loosely) was the influx of cash to assist in supporting local governmental operations. Initially aimed at the purchase of materials to protect the health of employees and others in their care, use of these funds was later adjusted as it was realized there wasn't going to be much in the ways of oversight and regulation from the federal government.
Then came the American Rescue Plan Act, funds from which have been used in infrastructure projects, as well as those for recreation, the purchase of certain vehicles and more.
These funds certainly have been a help in support of operations, but, at the same time, provided an artificial cushion in city and county budgets.
When a city shows a budget of $24 million, as an example, how much of that do you think is derived from these temporary federal grant programs?
CARES Act dollars are pretty much gone from everyone's coffers at this point, and there is a deadline to expend ARPA funds within the next 18 months. When that's over, things will go back to their "normal" levels.
Keep in mind, also, there will be some adjustments as a result of the changes in the business climate. The closure of some large employers in the last few months will affect local cities and counties. There will be some relief through the construction of a couple other employers, and the hope of others joining them, but it will take some time before a full picture can be painted in that respect.
Government budgets aren't necessarily handled the same way you or I would handle the ones we have for our personal lives. Still, much like we are facing at home, they are going to be facing changes in the coming years which likely will result in them having to tighten their belts again.
(Howell, a resident of Colliers, is managing editor of The Weirton Daily Times, and can be contacted at chowell@weirtondailytimes.com or followed on Twitter/X @ChowellWDT)