Tax Cuts are Tied to Teacher Strike

From the WV Center for Budget & Policy, March 4, 2018

A recent Huffington Post piece shows how a decade of business tax cuts helped fuel the West Virginia teacher strike.

Since 2006, the state has cut millions in business tax cuts in a failed effort to boost economic activity. It has cost the state roughly $425 million annually and lead to nearly $600 million being carved out of the state budget.

State spending on teachers and service personnel is down $90 million since 2012. If legislators say they can’t afford a permanent revenue stream to address public workers’ concerns, it’s because the state prioritized business over education.

In the News for West Virginia

For the first time in the past several years, West Virginia is not going through a budget crisis. The multiple years of budget gaps reaching hundreds of millions of dollars have stopped, and the governor’s budget actually projects significant budget surpluses in the years ahead.

WVCBP senior policy analyst Sean O’Leary has taken a look at what investments the state could be making in its people instead of the special interest tax cuts proposed in SJR9.

WVCBP senior policy analyst Sean O’Leary tackles the questions of can West Virginia afford to not increase its natural gas severance tax.

With the debate over teacher and other public employee pay and PEIA costs currently ongoing, proposals have been floated to address PEIA costs with an increase in the natural gas severance tax. The gas industry resists an increase, claiming it would destroy the industry, but the data shows otherwise.

Even a modest increase to 7.5 percent, while leaving plenty for the industry, would have a big impact on the state’s finances. Increasing the severance tax rate to 7.5 percent would increase severance tax revenue by $93 million in 2019, and at total $585 million from 2019 to 2023.

WVCBP communications director Caitlin Cook writes about a new and dangerous shift in West Virginia state policy – preemption – in this piece.

Senate Bill 458 would end the ability of local mayors, councils, and commissioners to represent their communities’ unique values, views, and needs. They would be powerless to impact local matters like wages, paid sick time, fair scheduling and employment history.

Contact Judiciary Chairman John Shott and respectfully ask that SB 458 be taken off the agenda.

This WVCBP blog cautions the legislature on the risk of tying teacher and public worker pay raises to a new revenue estimate that is on shaky ground.

The new revenue estimate included an additional $58 million in tax revenue and came a day after Gov. Justice announced a pay raise “deal” that would include a five percent raise for teachers and school service personnel, and a three percent raise for other state employees.

West Virginia would need around a $1.3 billion boost in economic activity to generate an additional $58 million in general revenue funds. This move could lead to mid-year budget cuts or Rainy Day Fund reductions if the revenue target isn’t met. A more sound approach would be a permanent revenue source for public employee pay and insurance.

Breaking News — Governor Announces End to Strike

Breaking News from The 74 Million, February 27, 2018

Update: At a press conference Tuesday night, West Virginia Gov. Jim Justice announced an end to the four-day teachers’ strike that had closed schools across the state. Teachers and school personnel will receive a 5 percent raise next year, he said, and all other state employees will get a 3 percent increase.

Schools will be back in session Thursday; Wednesday will be a “cooling-off day,” because some schools had already canceled class. Justice also said he will create a task force to evaluate the teachers’ insurance program, which, in addition to low pay, was a cause of the walkout. Union leaders said they reserve the right to pull teachers out of class again if the state legislature does not sign on to the plan.

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U.S. Education Secretary Betsy DeVos had chimed in on the West Virginia teachers’ strike on its fourth day, saying that good teachers “deserve better pay” but students should not miss school due to adult disagreements.

Across the state, teachers had refused to work since Thursday, affecting about 270,000 students.

Teachers called for higher pay and better benefits, NPR reported. The teachers also oppose laws they say would make it harder for the state to hire good teachers. Teachers have rallied at the capitol in Charleston, West Virginia, and at their schools.

Union leaders demanded to meet with the governor and legislative leaders to discuss the teachers’ concerns. The state’s two teachers unions had rejected a proposed 2 percent pay raise with further 1 percent increases for the next two years, calling it insufficient when health care costs for teachers are on the rise.

“Our issues are clear — our commitment to finding a solution has been consistent; we stand together for our students, our community, and our state,” Christine Campbell, president of the West Virginia chapter of the American Federation of Teachers, said at the rally. “We challenge the House leader, the Senate leader, and the governor, to bring us to the table today.”

The strike, which some called a “work stoppage,” could be against the law. State Attorney General Patrick Morrisey tweeted last week that the work stoppage is “unlawful and should come to an end.”

Average teacher pay in West Virginia ranks near the bottom nationally, at $44,701, according to the West Virginia Education Association.

Teachers Work Stoppage for Information Picketing at West Liberty, WV

By Duane Nichols, Retired Chemical Engineer, Stewartstown, WV

This is the Second Day of work stoppage protest by the WV educators. This is important because we ALL benefit from a strong and comprehensive system of education. Education in West Virginia is under funded. There are over 700 openings in the 55 counties, because the salaries and benefits are too low.

The teachers held an incredible rally at the State Capitol in Charleston yesterday, very well attended and very active! The State Legislature, bent on tax cuts year after year, has a responsibility to fully fund education. It’s even specified in our State’s Constitution.

There is money in our natural resources, coal, oil, natural gas, timber, wind, and solar. These sources need to be tapped as necessary to achieve a strong and vibrant state government. We are overdue for an increase in the gasoline tax.

We are overdue for a new tax called a “carbon fee.” Such a carbon tax can supplement education and be used for infrastructure in our state. It’s primary purpose is to reduce the impacts of climate change. Lord knows it is time to start a real response to the effects of greenhouse gases in the atmosphere. The main effect is called “global warming” that influences our earth in many and various ways.

My education started in 1940, in a one room school for eight grades. Change is inevitable. Later, I was in a three room school until the eighth grade. My high school building had over 12 rooms, but the wood inner structure burned a few years after. The community had such pride in the schools that new and better facilities were constructed. West Virginians have very great pride in our educational system and our educators. Community spirit is high across the State.

We have always had a plentiful supply of coal and natural gas in West Virginia. These can and should be taxed. The coal and gas industries use our land and water (public water), and they dispose of their wastes on the land and in the air and water. These industries should pay for education!

Our teachers are becoming active and they are to be admired for that, as they care deeply! Information picketing has been underway statewide. I saw them in person in Baker in the far East of WV off US Route 48, and in Mount Storm on US Route 50, and in Morgantown on WV 857 near I-68. I known they were out all across the State. See the photo above from West Liberty in Brooke County.

One chant of the educators is “Tax Our Gas.” When deep natural gas is recovered from depths of approximately one mile, it actually belongs to the earth and to the people in general as much as it belongs to mineral owners or surface land owners. So, let’s continue to say Tax Our Gas!

Change continues world-wide. We need education at all ages! We need to learn about the Food-Energy-Water Nexus. We need to learn about “the limits to growth” and the threats to the future of mankind. In education we have hope for the future, so let’s fully fund education and support education in our work day lives and in our leisure time.

Most poems contain ideas to make us think:

“Don’t tax you, don’t tax me; Tax that fellow behind the tree!”