Begin Planning For Budget Woes
To his credit, W.Va. Gov. Earl Ray Tomblin has acted expeditiously and decisively when it appeared state spending might outpace revenue. He may have to do so again this fall.
This week it was reported that with just two months elapsed in the current fiscal year, state tax collections are running $32.2 million below estimates. Deputy Revenue Secretary Mark Muchow said it is too early to decide the budget is out of balance, but he added revenue during September will provide a better idea of what lies ahead.
If September figures indicate a continuing trend of lower than expected income for the state, Tomblin should take steps as he has in the past to cut spending.
That will be unpleasant – but waiting while the red ink gets deeper would create an even greater problem later in the year.