BRADENTON, Fla. - West Virginia lawmakers will be called into special session Monday to continue work on the 2017 budget, though there is no advance agreement on measures to close a $270 million gap.
Gov. Earl Ray Tomblin will submit a budget, revised from an earlier version to include updated revenue estimates, said the governor's spokesman, Chris Stadelman.
Tomblin will again recommend tax increases, Stadelman said Wednesday.
They will include increasing the tax on tobacco products, imposing a telecommunications tax, and a temporary or permanent state sales tax increase.
Lawmakers rejected tax hikes them during the regular session, which ended March 15 when they could not reach agreement on a budget for fiscal 2017.
The new budget year starts July 1.
Stadelman said the governor's office has already notified lawmakers about the session so they can prepare to return to Charleston. The formal call will be announced
Global weakness in the energy sector led S&P Global Ratings to downgrade West Virginia's general obligation debt to AA-minus from AA on April 21.
As a coal-producing state, West Virginia has seen key economic indicators erode from rapidly declining coal and natural gas prices and statewide layoffs for key energy sector employers.
As a result, the state is experiencing a "long-term challenge rather than a cyclical setback," S&P said.
In response to S&P's action, Tomblin warned of more downgrades if the state continues to make deep cuts to critical programs and services.
Over the past three years, he said, many state agency budgets have seen cuts of more than 20%.
"If we don't take proactive steps to develop a stable path forward that does not rely on one-time monies and even deeper cuts to cover long-term and recurring needs, the economic and budget challenges facing our state will only get worse," Tomblin said.
