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CHARLESTON -- With tax surpluses in West Virginia already nearing half a billion dollars one-fourth of the way through the current fiscal year, Gov. Jim Justice said he was confident that the state can swing a fourth pay increase for state employees.
Speaking during his COVID-19 virtual briefing from the State Capitol Building, Justice said he would once again propose legislation in 2023 for a 5% average pay raise for public employees and in the executive branch, West Virginia State Police troopers, teachers, and school service personnel kicking in next July.
"At the end of the day, what I really hope is we can get through the fourth pay raise of another 5% to all of our state employees and then before I go out the door, if we can continue to stay on a good path and continue to do well in the State of West Virginia, I'd like to do the fifth, but we'll see," he said.
Justice and the West Virginia Legislature have pushed through 5% pay raises in 2018, 2019, and earlier this year. The first 5% pay increase came about after a teacher and school service personnel strike when lawmakers offered a smaller pay increase. But Justice was proactive in offering 5% pay raises prior to the 2019 and 2022 regular legislative sessions.
The state offered the 5% pay raise earlier this year in anticipation of ending fiscal year 2022 in June with a record-breaking tax revenue surplus for the general revenue budget. West Virginia ended the fiscal year with more than $1.3 billion in excess revenue due to maintaining a flat budget, natural growth in tax collections, better-than-expected revenue from coal and natural gas severance taxes, federal stimulus, and high inflation rates.
West Virginia is already on track to having another massive tax revenue surplus. The state ended the first three months of fiscal year 2023 - July, August, and September - with $427 million in surplus tax revenue. According to the Department of Revenue, a 5% pay raise for public employees would cost approximately $120 million beginning next July.
Justice said he would have the pay raise introduced during the 2023 legislative session beginning in January, though its fate will be in the hands of lawmakers.
"It may very be that things won't go well, and it may very well be that the Legislature decides they don't want to do that, but I think we should do that," Justice said. "We should reward all state employees … but I believe we can absolutely do better no question whatsoever. I believe we've got real room above us to significantly move."
Justice confirmed he first pitched his plan for another 5% pay raise to county superintendents in a private meeting last week in Charleston encouraging them to oppose Amendment 2, a constitutional amendment on the Nov. 8 ballot that would give lawmakers the authority to reduce or eliminate certain tangible personal property taxes.