Our Priorities, Our State Budget WVCBP Annual Meeting, February 7, 2012 Ted Boettner, Executive...
12
Our Priorities, Our State Budget WVCBP Annual Meeting, February 7, 2012 Ted Boettner, Executive Director
-
Upload
shane-lemay -
Category
Documents
-
view
213 -
download
0
Transcript of Our Priorities, Our State Budget WVCBP Annual Meeting, February 7, 2012 Ted Boettner, Executive...
Our Priorities, Our State BudgetWVCBP Annua l Mee t ing , Feb ruary 7 , 2012
Ted Boettner, Executive Director
Overview
Our Budget Priorities for FY 2013
Tax & Spending Trends
Long-term Budget Challenges
Making the “Revenue Connection”
Our Budget Priorities
48.7%
10.4%
19.0%
21.9%
FY 2013 Base Budget: $4.5 Billion
Other
Health & Human Services
Higher Education
Public Education
Almost 80% of OUR Budget goes to public schools, health care and human services, and
universities
Paying for Priorities
38.7%
26.9%
10.4%5.6%
6.80%
11.7%
FY2013 Base Budget Revenue
Other
Lottery
Business (CNIT/BFT)
Severance
Sales
Personal Income
About 2 /3 r d s o f ou r revenue i s f r om pe rsona l i ncome
and sa les taxes
Severance Saving State from Tax Cuts
FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012*
FY 2013*
-60.0%
-50.0%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
Personal Income
Corporate Net income & Busi-ness Franchise
Sales & Use
Severance
Source: WVCBP analysis of WV Budget Office Data*Estimates
Eroding Business Tax Base
FY 1
995
FY 1
996
FY19
97
FY19
98
FY19
99
FY20
00
FY20
01
FY20
02
FY20
03
FY20
04
FY20
05
FY20
06
FY20
07
FY20
08
FY20
09
FY20
10
FY20
11
FY20
12
FY20
13
FY20
14
FY20
15$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
9.5%
7.5%
Source: WV Executive Budget, Volume I, FY1995-2013
exp
rese
ed
in
th
ou
san
ds
(nom
inal d
ola
rs)
CN
IT/B
FT R
even
es
as
a s
hare
of
GFR
Growing Severance Tax Base
FY 1
995
FY 1
996
FY19
97
FY19
98
FY19
99
FY20
00
FY20
01
FY20
02
FY20
03
FY20
04
FY20
05
FY20
06
FY20
07
FY20
08
FY20
09
FY20
10
FY20
11
FY20
12
FY20
13
FY20
14
FY20
15$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
$500,000
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
7.7%
10.8%
Source: WV Executive Budget, Volume I, FY1995-2013
exp
ress
ed
in
th
ou
san
ds
(nom
inal d
olla
rs)
Severn
ace
Tax R
even
ues
as
a s
hare
of
GFR
Corrections Spending Growing Fast
FY2000 FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
$200,000
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
4.50%
5.00%
2.65%
4.08%
Source: WV Executive Budget, Volume II, FY 2003-2013
exp
ress
ed
in
th
ou
san
ds
(nom
inal d
olla
rs)
Corr
ect
ion
s Exp
en
dit
ure
s as
a s
hare
of
GR
F
Exp
en
dit
ure
s
Eroding State Support is Pushing Tuition Higher
FY 2002
FY 2003
FY 2004
FY 2005
FY 2006
FY 2007
FY 2008
FY 2009
FY 2010
FY 2011
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
$10,000
$3,541
Average Under-graduate Tuition
for In-state Students
$5,147
$8,779
State Higher Education
Appropriations per Student
(FTE)
$6,224
Source: WVHPC and WV Executive Budget, Volume II, FY 2003-2013
(20
11
do
lla
rs)
Medicaid Spending
FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
Source: NASB0 and WV Budget Office data
exp
ress
ed in
mill
ions
Sta
te M
edic
aid
Spendin
g a
s a s
hare
of
base
budget
Long-term Budget Challenges
Severance tax revenues will remain steady, but business tax revenues will continue to decline.
Working-age population is projected to decline, while number of seniors expected to grow.
West Virginia continues to rank low in economic welfare indicators.
West Virginia has a long-term structural budget problem, with long-term expenditure growth outpacing revenue growth.
Heath care costs will become an important factor in controlling rising state expenditures.
Making the “Revenue Connection”
We need adequate revenue if we want to:
Reduce child poverty
Make college more affordable
Grow West Virginia’s economy
Create safe, strong communities
Improve our quality of life
