Justice Department Announces Special Session Later This Month to Discuss New Tax Cut Plus Child Care

Governor Jim Justice has announced that he will convene a special session on September 30 in which lawmakers will discuss tax cuts, child care aid and the allocation of additional funds for other needs in West Virginia.

The governor’s announcement came in a three-paragraph press release from his administration, along with an accompanying video message. Together, they outlined the broad outline of the issues to be considered, but proposed details have yet to come.

“We’ve been working with the legislative leadership this past weekend. We’ve been working countless days over the last few weeks and everything — and, really, that date seems to work best for everybody. We want to be super respectful to the legislative branch, but we’ve got to get to the finish line,” Justice said in the video.

“I promised you that I would stand up and fight like hell for you to get another 5% tax cut for you. I promised you that I would try to help with child care and absolutely try to get our tax cut across the finish line with child care. There are absolutely additional appropriations that need to be made, and we need to get the money out the door and get these projects moving.”

Justice first called for a 5% cut on July 1, the start of a new budget year, surprising legislative leaders.

The state has implemented a 21.25% income tax cut this year, in a package that includes further automatic cuts under certain economic conditions.

West Virginia faced such economic circumstances, resulting in an additional 4% income tax cut.

The Justice Department wants another 5% on top of that.

Justice’s second term as governor ends in a few months. He is running as a Republican for the United States Senate.

“I promised you I’m going to run to the end and work every day as hard as I can for the voters, for the Tobys and Ediths out there. Inflation is eating us up right now. We all know that. Toby and Edith need us. So I hope in every way possible that everyone in the legislature hears that voice. Those people, it’s their money. And with everything in me, we can do it. We can do it; we can do it now. We need another tax cut,” Justice said in the video.

The Republican nominee to succeed Justice as governor, three-term Attorney General Patrick Morrisey, has voiced support for the tax cut concept. But in a written statement from his campaign, Morrisey said that decision would have to come during the next legislative session, when newly elected officials would have a say.

“I applaud Governor Justice’s commitment to reducing our state income taxes. I plan to double down on that commitment and advance Justice’s next phase of income tax cuts as the state’s next governor. At the same time, it is critical that any major changes to the income tax system be accompanied by changes to reform government and pay for these tax cuts. This can best be accomplished during the next regular session of the Legislature, when we can make the most informed decisions,” Morrisey said.

Current lawmakers have generally expressed caution about the governor’s proposal to cut the 5% tax because other tax cuts are still in effect and because additional spending commitments remain in place, such as the continued rollout of the Third Grade Success Act and the estimated additional costs of increased enrollment in the Hope Scholarship.

“Governor Justice’s demand for more tax cuts flies in the face of fiscal responsibility and lawmakers should reject it,” said Kelly Allen, executive director of the progressive think tank West Virginia Center on Budget & Policy.

“The state is struggling with slowing tax collections, tax cuts already enacted that have yet to be implemented, and a multitude of unmet needs that must be addressed and assessed before more tax cuts that benefit the wealthy are implemented.”

Justice has indicated that childcare issues will be part of the special session he plans to convene.

The governor advocated for a child care tax credit during this year’s regular legislative session. Lawmakers have also considered increasing state funding for subsidies that can help child care providers stay afloat while keeping costs manageable for families.

The problem is simmering as child care providers close under economic pressure. Updates to the federal Child Care and Development Fund, the nation’s largest funding stream for helping families afford child care, now require states to subsidize based on enrollment rather than attendance.

The Department of Human Services is using short-term funds to cover that for now, and the agency has said it will give lawmakers 60 days’ notice before that money runs out. As the clock ticks on that emergency funding, the state must determine how best to support child care options that are impacting thousands of children.

The West Virginia Chamber of Commerce is pushing for more support for child care options in West Virginia.

“This is a problem that is only going to get worse and West Virginia has a real opportunity to address this head-on,” said Brian Dayton, vice president of policy and advocacy for the business-focused chamber.