Perdue: State Doesn’t Need Stimulus
By JOSELYN KINGWest Virginia Treasurer John Perdue believes an economic stimulus was needed by some states experiencing financial downturns, but that West Virginia was not among them.
He also contends that because the state has been "fiscally responsible" in paying down its debts, it's also missing out on the funding that now is going to money-strapped states.
"In some places, the stimulus was definitely needed," said Perdue, who recently visited the Northern Panhandle. "But their problems are a lot different than the problems in West Virginia."
He noted that West Virginia has "already lived through what they are going through now," with much of the financial problems in other states being attributed to pension debt.
West Virginia in recent years worked to pay these debts down, he continued, avoiding the rise in interest rates and the instability of many financial institutions.
"We learned it can cost you," Perdue said. "You have to get it out of the way in case something like this happens, and it did happen."
He termed the taxpayer dollars coming to West Virginia through the federal stimulus package as "icing on the cake," but Perdue added that more of the dollars are going to the states that didn't manage their finances well.
"In a way, it hurts us because we haven't had the financial difficulties," he said.
West Virginia is "still doing well," according to Perdue.
"I'm not saying we're not facing tough times, but we have been able to balance our budget," he said. "We'll recover a lot faster."
He expects West Virginia will be able to handle an unemployment rate as high as 8 percent, but that if many more state residents lose their jobs it could put a drain on the state's unemployment insurance system.
West Virginia's unemployment rate is currently at 7.8 percent, and Perdue expects remaining employers may have to bear the burden of higher unemployment insurance.
"It will happen, and it has happened," he said.
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cory1978
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05-26-09 11:57 AM
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Stay classy WV. Keep voting RED ya schmucks.
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RockEReputation
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05-26-09 9:38 AM
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With a family of four living at the poverty level in West Virginia paying 9.5% of their income into state and local tax coffers and the richest 1% paying only 6.6%, West Virginia can increase revenues through more equitable income taxing.
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