State Employee Pay Raise Hits West Virginia Budget

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State Employee Pay Raise Hits West Virginia Budget

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Teachers in West Virginia Struck for nine days – the longest teaches’ strike in state history – and won a 5% pay increase. Then it was up to legislators to find money in the budget to fund the pay hike for not only teachers but all state employees. They did so, but other areas of the budget felt the hit.

 

Gov. Justice signed legislation that provided teachers with their 5% pay increase on March 6. Then a few days later legislators passed a state budget that included a 5% pay increase for all state employees. The salary increases cost $111 million. Other items demanded by teachers, such as concessions on health insurance increases, cost an additional $43 million.

 

To help offset the pay raises for state employees, legislators took the following budget actions:

  • A $46 million increase as requested by Gov. Justice for the Division of Commerce and the Department of Tourism will not be funded
  • $18 million in deferred maintenance projects will not be completed
  • $12 million transfer to the roads fund from the general fund will not happen
  • $13.5 million to shore up the state’s workers’ compensation fund will not be provided

 

The budget also calls for cuts to the Medicaid program, but it is likely that the governor will find a way to make that money up from elsewhere.

 

With the governor signing the budget, it puts the pay raise issue to rest for the time being. However, there is concern over whether revenue projects are correct. If revenue is less than anticipated, it will cause problems in the coming fiscal year.

 

Do you support West Virginia state employees receiving a 5% pay raise? Or do you think that legislators had to cut too much from the state’s other budget priorities to fund this pay hike?

 

 

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