BRIDGEPORT - West Virginia's acting Gov. Earl Ray Tomblin assured those attending Wednesday's Legislative Preview Luncheon that there will be no new tax increases, no layoffs of state employees and no programs shut down in 2011 because of the fiscal responsibility of previous Legislatures.
"I will present a balanced budget (Jan. 12) without using any stimulus funds," he said. "We are not facing the same problems as other states, that being huge budget deficits. We will not have to increase taxes or cut programs like many of our sister states are doing."
Tomblin, however, admitted that the lawmakers must find a way to deal with an $8 billion potential liability from the post-employment benefits of retired state employees. Most of the liability is because of rising health insurance costs, and he said the matter will be addressed during the upcoming session.
"Hopefully during this session of the Legislature, we can stop the hemorrhaging."
Tomblin also said there is enough money set aside to cover any potential problems in the unemployment compensation department.
"It will remain solvent, and we will not have to look at (increasing fees) to businesses or employees," he said.
Tomblin said he sees the "glass as half-full and rising" in West Virginia, particularly in light of the recent announcement that Macy's will build a major fulfillment center near Martinsburg that will employ nearly 1,200 permanent jobs and another 700 seasonal ones during peak times. West Virginia beat out 156 other sites, including one in Macy's headquarter state of New York for the site. The 1.3-million square foot facility will be one of the largest, if not the largest building in the state, he said.
"It will compare to when Clarksburg got the FBI center," he said. "It will trigger more economic activity in the eastern panhandle."
Tomblin cited economic statistics that indicate the cost of living in West Virginia is 6.5 percent below the national average, and the cost of doing business is 13 percent below the national average. He said that can help attract other economic opportunities to the state if the educational system will produce the necessary workers for those jobs.
"The key is the community and technical college system," he said. "They have the flexibility to customize training to meet business needs. This keeps potential employees ready and marketable."
Tomblin's remarks set well with state Sen. Doug Facemire, who represents the 12th District. He said the state is fortunate to have a conservative governor who will be business friendly.
"But at the same time, he understands the importance of taking care of our citizens," Facemire said. "We are very fortunate to have a middle-of-the-road governor. We're anxious to see what he will talk about in the State of the State Address."
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