Coal Slurry Injection Moratorium-Sound Familiar?

Last week the WV Department of Environmental Protection issued a moratorium on any new underground coal slurry injections. Their study along with several other private studies have concluded that there exists a real concern for the toxins being found in potential well waters.



You may recall that I called for a moratorium on coal slurry injections in March of this year. You can access my previous article in the archives section on the right side of this page by clicking on the week of 3/15 to 3/22.



You can also read an article from the Associated Press by clicking on the following link: http://www.cnbc.com/id/30991041



Additionally the DEP's entire report can be found here: http://www.wvdep.org/dmr/slurrystudy

$11.5 BILLION WEST VIRGINIA BUDGET

GENERAL REVENUE

$3,787,976,953

ROAD FUND

1,367,137,215

SPECIAL REVENUE

1,424,170,416

LOTTERY

166,010,000

EXCESS LOTTERY

312,118,000

FEDERAL REVENUE

4,108,936,130

FEDERAL BLOCK

403,321,924

_______________

Grand Total

$11,569,670,638

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OVERALL HIGHLIGHTS

The Governor's introduced version of the budget bill as presented in February contained a total General Revenue appropriation of $3,971,794,588 with all accounts being fully funded.

Mid session, revised revenue estimates led to a reduction of total General Revenue and Lottery available for appropriation by $197,493,639, leaving total General Revenue available for appropriation at $3.788 Billion.

Expenditure reductions were across the board and ranged from 2% to 10% up to 100% in some instances and included:

1. 
   
   The elimination of the OPEB (Other Post Employee Benefits) as contained in the original proposed bill. This elimination freed up up $51 million.


2. 
   
   The reduction of the Medicaid appropriation from the original proposed bill. This reduction freed up $47 million and will be back filled with an FMAP (Federal Medical Assistance Percentage) funding, ultimately resulting in no reduction.


3. 
   
   The Governor's Civil Contingency Fund appropriation was eliminated. The Legislature's Traffic account and the appropriation for the Enterprise Resource Planning System (ERP) were eliminated, resulting in an additional $38 million in savings. These eliminated line items are currently considered one-time eliminations and will be reconsidered for restoration next budget cycle.


4. Public Education (available for Federal Stabilization Funding) was reduced by $23 million. This reduction will be immediately replaced with Federal Stabilization Funding. Federal Guidelines dictates that states must use their allocations to help restore for FY2009, 2010, and 2011 support for public education (school aid formula and higher education) to the greater of the FY2008 or FY2009 level.
   
   This totaled $167,000,000 in cuts. Only $31,000,000 of ongoing cuts were left to be made to come up with the approximately $198 million in reductions.
   
   The state's share of Federal Stabilization Funding for Education is $218 million. The Governor has a discretionary appropriation of $48 million. It is estimated that as much as $65 million will be used for Public Education for FY 2011 and $35 million for Higher Education. Remaining funds after the restoration of support for public education (school aid formula) and higher education for 2010 and 2011 budgets, the state must then award the funds to county boards of education. That distribution is based on each county's Title 1 appropriation, but is not subject to Title I program requirements.
   
   Ultimately, Public Education (School Aid Funding Formula) will not see a budget cut for this year or next year. However, once the stabilization funding is gone, we are required by Constitution to make up the funding shortfall.
   
   *******The Local Share included in the Governor's original bill was $12 million less than what was actually received. Due to the delayed consideration and passage of a budget bill, the Governor was able to capture that additional funding to use in his revised estimates. That money would normally have been available for legislative appropriation.
   



5. Higher Education, based on the last two years appropriations, the FY2009 appropriation was the highest of the two years. That was our starting point. The state budget office asked HEPC to provide new numbers that reflected a 10% cut. Several factors were taken into consideration when looking at the final reductions that were provided by HEPC. The Budget Office then had to make even more adjustments to finally come up with the new adjusted Governors numbers. Essentially, the schools were cut by approximately 3% when compared to the Governor's introduced bill. Some institutions may have been slightly higher. The Federal Stabilization funding can only be used to backfill the reductions to the current FY2009 appropriations.


6. BRIM (Board of Risk and Insurance Management) appropriations were reduced to match actuall billing prices.


7. The EAST Bonds, (Education, Arts, Sciences and Tourism Debt Service Fund) will be paid off this year. A reduced final payment of $8.2 million is included from the Lottery.


8. Different than the originally proposed bill, the Federal Block Grant portion of the budget contains the addition of several line item changes. The addition of budget activity 891, Federal Economic Stimulus, is included with estimates for possible stimulus funding to be received during the next fiscal year.

As a result of the economic downturn, the fixed payment of $289.7 million (resulting from tobacco securitization) for the Teacher's Retirement System, Unfunded Liability was increased to $330.8 million, Public Employees Insurance Premiums required an additional $15.6 million, Public Safety Retirement Plan A Unfunded Liabilities required an additional $8.6 million and State Police retirement B required an increase of 3% to the employers match resulting in an additional appropriation of $624,000. The employer contribution for PERS, increasing the employer match from 10.5% to 11% cost an additional $1.7 million. Each of these items is projected to be substantially higher next year when the budget bill is presented.. Claims Against the State - General Revenue $809,942; Special Revenue $305,999; State Road Fund $508,745.

Highlights in the Final Conference Committee HB2010

Secretary of State - $175,000 was added for Technology and equipment upgrades.

Commerce - $25,000 was restored back to the I-79 Development Council; $15,000 was restored back to the Coal Mine Safety and Technical Review Committee Coal Forums; $145,000 was added for the Coal Mine Safety Technology Task Force.

Public Education - contains some cuts that were recommended by Dept. of Education instead of the Governors recommended cuts. Also the Governor's adjusted numbers decreased the Technology Infrastructure line item in lottery by $9,7000,000 and moved it to a new Broadband line item. This bill moved this funding back to the Technology Infrastructure line item. Restored $15,000 ot the WV Commission for Holocaust Education. $6,200,000 for Student Enrichment Programs that was in the Governor's introduced bill (HB2832 died during Regular Session) has been taken out. $5,000,000 had been added for Technology System Specialists, A new program that will allow the State Department of Education to make available matching grants of $40,000 to county boards of education for each learning technology proficient school with a minimum net enrollment of 450 students for a full-time Technology System Specialist to be employed within the school. (Language had been added in the House Budget Bill for this program). State Department of Education's Personal Services was restored $93,350 and Unclassified was restored back to the FY2009 level. The High Acuity Special Needs line item was reduced by $250,000 in anticipation of federal stimulus money being used for this purpose.

Education and the Arts - $75,000 has been added to Culture and History for the Grants for Competitive Arts Program. $15,000 had been added to this agency for the South Eastern Museums Conference and $100,000 had been added for the Sesquicentennial Celebration. Under the Library Commission, approximately $75,000 had been restored to the Services for the Blind and Handicapped line iten when compared to Governor's adjustment numbers. Center for Professional Development line item under the Office of the Secretary account was reduced by a couple hundred thousand.

Department of Health and Human Resources

Division of Health - $130,000 was added to the Cardicac Project line item for a total of $500,000; The line for Epidemiology Support was restored to a total of $1,733,837; The line for Primary Care Support was restored to a total of $8,849,423; $500,000 was added for Health Right Free Clinics; and $35,000 was appropriated for the Diabetes Education and Prevention Program.

Consolidated Medical Services Fund - The line for Institutional Facilities Operations was reduced by $100,000.

Division of Human Services - The line for WV Teaching Hospitals Tertirary/Safety Net was increased by $1.5 million; In-Home Family Education was increased by $500,000; Grants for Licensed Domestic Violence Programs was increased by $1 million; and the line for Medical Services was decreased by $3,561,000 which will be back-filled by the increased Medicaid FMAP.

Military Affairs and Public Safety - Mountaineer Challenge was restored to its own line in the amount of $1,500,000.

Department of Revenue - The line for Pay Equiy Reserve was restored to the FY2009 level in the amount of $250,000.

Higher Education - $100,000 had been included for the Luke Lee Learning Center at Marshall. This program will teach deaf children from birth to age six to listen and speak so they may be successful in mainstream hearing society. $100,000 had been added for the WV Alzheimer Disease Register. SB112 passed during session of 2006 that created this regiser and we have never funded it. The HEPC unclassified was restored back to the FY2009 level minus a one time appropriation.