State Agencies Begin Preparations for the 2014 Budget
The State of West Virginia began budget preparations on Monday for the 2014 fiscal year.
Secretary of Revenue Charles Lorensen sent out budget documents instructing agencies for budget proposals, targeting an overall reduction in expenditures of approximately 2% for 2014.
“At a time when other states have faced huge deficits, are being forced to cut critical services, and making significant budget reductions, West Virginia’s fiscal health remains strong. We continue to operate with a budget surplus, and we are addressing our long-term debt,” said Governor Tomblin. “However, we must vigilantly prepare for the future. My administration will continue to make fiscal responsibility a top priority. For 2014, we must simply do more with less in certain of our agencies. We will be up to that challenge.”
To prepare for anticipated increases in Medicaid expenditures, declining severance revenues and lottery revenues, certain state agencies have been asked to tighten their budgets by 7.5 % in an effort to ensure our state remains on a path of fiscal responsibility, leading to an overall reduction of approximately 2% in expenditures.
Importantly, the governor specified that spending on the school aide formula, correctional programs, and certain health-related services are not to be subject to the proposed reduction.