#1OF WEST VIRGINIA STATE OF WEST VIRGINIA EXECUTIVE BUDGET GENERAL AND LOTTERY FUNDS WWW.BUDGET.WV.GOV JIM JUSTICE GOVERNOR FISCAL YEAR 2022#2State of West Virginia - Executive Budget • Challenging budget years in FY 2017 - FY 2021 (except FY 2019 - revenues were significantly higher than estimated) • COVID-19 . • Despite a less active economy due to COVID-19 restrictions, FY 2021 revenues are still above estimate at the end of January 2021. FY 2021 Lottery and Excess Lottery FYTD revenues are running about 9.5% ahead of December 31, 2020 FYTD estimates. . Ended FY 2020 with a General Revenue surplus of $28 million, with $14 million transferred to Rainy Day, $6.0 million to fund General Revenue Surplus Section appropriations in the FY 2021 Budget Bill and $8.1 million available and proposed for supplemental appropriation. • FY 2021 General Revenue cash flow remains strong - we continue to pay our bills on time. • The FY 2022 General Revenue Estimate is noticeably less than the current fiscal year estimate. • FY 2022 General Revenue Estimate of $4,569,616,000 vs. FY 2021 General Revenue Estimate was $4,574,514,000. Governor recommends a balanced FY 2022 budget. • FY 2022 Total General, Lottery and Excess Lottery of $4,920,306 vs FY 2020 total of 4,977,579. • • PEIA fully funded with no programmatic changes. • No Rainy-Day funds are used to balance FY 2022. • Rainy Day funds continue to be among the best in the country - over $930 million as of January 31, 2021, • FY 2022 proposed expenditures are relatively flat with few improvements. • 100% of Required Retirement Contributions are funded in the FY 2021 budget. • Includes Governor's commitment to fund a Veterans' Nursing Home in Beckley, WV o A one-time FY 2022 budget bill appropriation of $7 million. o A one-time Surplus General Revenue supplemental appropriation of $8.5 million. • Includes $2 million additional funding for Senior Nutrition to maintain current increased service levels. • Includes 15 million additional funding for the Milton Flood Wall.#31,000 900 800 700 600 500 400 300 200 100 Rainy Day Balance at End of Fiscal Year 0 2003 2004 2005 2006 2007 2% 2008 2009 12% 2010 2011 2012 2013 2014 2015 2016 2017 22.8% 2018 2019 2020 2021 20.32%#4General Revenue Fund Recommended Appropriations Fiscal Year 2022 $4.569 Billion Public Education 42.8% *Other Legislature Executive Administration Arts, Culture and History Environment Revenue Veterans Assistance Transportation Senior Services Commerce 1.3% Judicial 3.0% Other* 9.6% Homeland Security 9.4% Higher Education 7.8% Health and Human Resources 26.0%#5Administration 8.0% Arts, Culture and History 12.6% Higher Education 9.8% Commerce 2.7% Lottery Funds Recommended Appropriations Fiscal Year 2022 $415.7 Million Lottery Fund $125.4 Million Senior Services 35.8% Senior Citizens Public Education 25.8% Tourism 5.4% Tax Credit 3.4% Public Education 6.5% State Parks 2.2% Infrastructure Council 15.8% Economic Development Excess Lottery Fund $290.3 Million 6.5% PROMISE Scholarship 10.0% Revenue* 42.9% Commerce 0.5% Medicaid 5.6% Racing Commission Higher Education 5.2% 1.2% *Includes $65,000,000 transfer to General Revenue Fund#6Total Recommended Appropriations General, Lottery, and Excess Lottery Fiscal Year 2022 $4.920 Billion* Public Education 42.3% Judicial & Legislative 3.5% Higher Education Policy Commission 9.6% Commerce 2.4% Other* 5.6% Administration 1.9% Military Affairs and Public Safety 7.9% Senior Services 1.5% Health and Human Resources 25.3% * $4.920 billion does not double count $65 million transfer from Excess Lottery to General Revenue.#7Governor's Recommendations FY 2022 (4) (1) Adjusted Governor's DEPARTMENT / Agency Description Fund Base FY 2021 (2) Adjustments Improvements (3) Recommendation FY 2022 GENERAL REVENUE LEGISLATURE Senate 0165 $5,952,206 House of Delegates 0170 Joint Expenses/Claims against State 0175 9,404,031 10,638,036 3,077,421 1,000,000 Subtotal 25,994,273 3,077,421 1,000,000 $5,952,206 Adjustments/Improvements Explanation 9,404,031 14,715,457 $3,077,421 adjusted to meet claims amount of $4,475,000; $1,000,000 as requested 30,071,694 JUDICIAL Supreme Court 0180 135,499,000 (31,000) 3,901,000 139,369,000 ($31,000) for Judges Retirement System EXECUTIVE Office of the Governor 0101 6,312,986 6,312,986 Custodial Fund 0102 569,451 569,451 Governor's Civil Contingent Fund 0105 14,000,000 9,000,000 State Auditor's Office 0116 2,823,095 State Treasurer's Office 0126 3,635,352 (200,000) Department of Agriculture 0131 12,500,083 23,000,000 $6,000,000 FY2021 surplus, backed out of FY2022 Base; and improvement of $15,000,000 included. $15,000,000 with $8,000,000 is the $23,000,000. 2,823,095 3,435,352 ($200,000) as requested 12,500,083 WV Conservation Agency 0132 11,023,235 11,023,235 Meat Inspection 0135 757,725 Agricultural Awards 0136 54,250 Agricultural Land Protection Auth. 0607 100,497 Attorney General 0150 4,953,457 Secretary of State 0155 957,594 757,725 54,250 100,497 4,953,457 957,594 State Election Commission 0160 Subtotal 7,508 57,695,233 7,508 (200,000) 9,000,000 66,495,233 ADMINISTRATION Office of the Secretary 0186 15,740,252 Public Employees Insurance Agency 0200 21,000,000 Division of Finance 0203 753,000 General Services Division 0230 27,769,219 Purchasing Division 0210 1,064,477 Comm. on Uniform State Laws 0214 45,550 Grievance Board 0220 1,124,712 Ethics Commission 0223 719,844 Public Defender Services 0226 34,485,646 Comm. Purchase from Handicapped 0233 4,055 Prosecuting Attorneys Institute 0557 246,653 Real Estate Division 0610 831,866 Travel Management 0615 1,260,842 Subtotal 105,046,116 15,740,252 21,000,000 753,000 27,769,219 1,064,477 45,550 1,124,712 719,844 34,485,646 4,055 246,653 831,866 1,260,842 0 0 105,046,116#8(1) Adjusted (4) Governor's DEPARTMENT / Agency Description Fund Base FY 2021 (2) (3) Recommendation Adjustments Improvements FY 2022 COMMERCE Office of the Secretary 0606 1,107,461 Tourism Office 0246 14,000,000 Forestry 0250 3,422,658 163,817 (14,000,000) 10,000 2,100,000 Geological & Economic Survey 0253 2,917,247 Development Office 0256 15,163,525 10,000 (15,163,525) Adjustments/Improvements Explanation 1,271,278 $163,817 as Commerce adjusted 0 Move and redesignate Office of Tourism as Department of Tourism. 5,532,658 $10,000 as Commerce adjusted; 2,100,000 to replace funds due to projected loss of revenue from State Forest Timber sales. 2,927,247 $10,000 as Commerce adjusted. O Move and redesignate Development Office as Department of Economic Development. Division of Labor 0260 1,843,176 Division of Natural Resources 0265 23,248,350 Miners' Health, Safety & Training 0277 11,525,820 25,000 (75,000) Bd of Coal Mine Health & Safety 0280 355,599 1,843,176 23,273,350 11,450,820 355,599 WorkForce WV 0572 59,363 59,363 Division of Energy 0612 1,244,267 (1,244,267) 0 Division of Rehabilitation Services Subtotal 0310 14,886,464 89,773,930 14,886,464 (30,273,975) 2,100,000 61,599,955 0246 14,000,000 Move and redesignate Office of Tourism as Department of Tourism. 20,029,708 $15,163,525 move from Development Office; ($133,817) made in Commerce adjustment; $5,000,000 improvement 1,244,267 Office of Energy organized within the Development Office, moved to new Department of Economic Development. TOURISM Office of the Secretary 14,000,000 ECONOMIC DEVELOPMENT Office of Secretary 0256 0 15,029,708 5,000,000 Office of Energy 0612 0 Subtotal 0 1,244,267 16,273,975 5,000,000 21,273,975 EDUCATION School Lunch Program 0303 State Department of Education 0313 2,466,907 95,209,981 23,281,798 Aid for Exceptional Children 0314 State Aid to Schools 0317 32,223,599 1,839,571,303 199,494 (89,609,367) 2,466,907 118,491,779 $4,526,005 moved from Lottery Revenue fund 3951 to General Revenue funding; $1,719,000 for Teachers' Retirement Savings Realized based on actuarial calculations; ($119,087) for Allowance for County Transfer, $17,710,000 for Increased Enrollment; ($554,102) Alternative Education Programs and Safe Schools funding (cameras) 32,423,093 Statutory Adjustments 1,749,961,936 $(12,061,000) for Teachers' Retirement System based on actuarial estimates; (5,859,000) for Retirement Systems-Unfunded Liability, and ($20,000,000) due to funding from State Debt Reduction Fund 37,578,299 Vocational Division 0390 Schools for the Deaf & the Blind 0320 Subtotal 37,269,034 14,677,888 2,021,418,712 309,265 14,677,888 (65,818,810) 0 1,955,599,902 DEPARTMENT OF ARTS, CULTURE, AND HISTORY Culture and History 0293 5,275,381 5,275,381 Library Commission 0296 1,640,790 1,640,790 Educational Broadcasting Authority 0300 3,830,691 3,830,691 Subtotal 10,746,862 0 0 10,746,862#9(1) (4) DEPARTMENT / Agency Description Fund Adjusted Base FY 2021 (2) (3) Adjustments Improvements Governor's Recommendation FY 2022 Adjustments/Improvements Explanation ENVIRONMENTAL PROTECTION Environmental Quality Board 0270 113,483 Environmental Protection 0273 6,498,479 Air Quality Board 0550 76,053 6,688,015 0 0 113,483 6,498,479 76,053 6,688,015 Subtotal HEALTH AND HUMAN RESOURCES Office of Secretary 0400 Division of Health 0407 667,244 90,946,744 (17,932,803) Division of Health 0525 222,693,154 2,640,000 Division of Health 0561 Human Rights Commission 0416 647,500 1,419,645 Human Services 0403 841,628,157 Subtotal 1,158,002,444 43,383,092 25,450,289 667,244 73,013,941 Transferred into FY 2021 for COVID testing. Reduced back to base for FY2022. 225,333,154 Improvemenst for Adult Mental Health Group Home facilities and Forensic Group Homes. 647,500 1,419,645 885,011,249 Medical Services 2,640,000 1,186,092,733 HOMELAND SECURITY Office of the Secretary 0430 3,853,843 3,853,843 Parole Board 0440 1,386,282 1,386,282 Homeland Security/Emerg. Mgmt. 0443 6,149,915 6,149,915 Corrections Central Office 0446 578,977 578,977 Correctional Units 0450 238,721,691 WV State Police 0453 Fire Commission 0436 Justice and Community Services 0546 115,035,475 64,021 10,466,605 613,333 238,721,691 115,648,808 Trooper Retirement 64,021 10,466,605 Juvenile Services 0570 45,041,897 45,041,897 Protective Services Division 0585 3,579,704 3,579,704 Division of Administrative Services Subtotal 0619 2,611,255 427,489,665 2,611,255 613,333 428,102,998 REVENUE Secretary of Revenue 0465 614,099 Tax Division 0470 29,239,291 614,099 29,239,291 State Budget Office 0595 923,591 923,591 Office of Tax Appeals 0593 553,445 553,445 Athletic Commission 0523 36,811 36,811 Subtotal 31,367,237 0 0 31,367,237 TRANSPORTATION State Rail Authority 0506 4,920,894 4,920,894 Public Transit 0510 2,262,989 2,262,989 Aeronautics Commission 0582 820,117 820,117 Subtotal 8,004,000 0 0 8,004,000#10Adjustments/Improvements Explanation 17,547,354 $7,000,000 for new Beckley Veteran's Center 1,464,595 $200,740 realignment between funds for Veterans' Outreach Program 19,011,949 (1) Adjusted (4) Governor's DEPARTMENT / Agency Description Fund Base FY 2021 (2) (3) Recommendation Adjustments Improvements FY 2022 VETERANS' ASSISTANCE Veterans' Affairs 0456 10,748,094 Veterans' Home 0460 1,263,855 Subtotal 12,011,949 (200,740) 7,000,000 200,740 0 7,000,000 SENIOR SERVICES Senior Services 0420 29,950,955 0 0 29,950,955 HIGHER EDUCATION Council for C&T College Education 0596 15,792,838 15,792,838 Mountwest C&T College 0599 6,489,307 6,489,307 New River C&T College 0600 5,864,886 5,864,886 Pierpont C&T College 0597 7,820,129 7,820,129 Blue Ridge C&T College 0601 7,830,842 7,830,842 WVU at Parkersburg 0351 10,319,284 10,319,284 Southern WV C&T College 0380 8,241,823 8,241,823 WV Northern C&T College 0383 7,285,825 7,285,825 Eastern WV C&T College 0587 2,179,912 2,179,912 BridgeValley C&T College 0618 8,098,811 8,098,811 HEPC-Administration 0589 74,029,892 WVNET 0551 1,747,826 74,029,892 1,747,826 WVU-School of Medicine 0343 20,946,037 20,946,037 West Virginia University 0344 110,742,558 110,742,558 Marshall University-School of Medicine 0347 13,648,213 13,648,213 Marshall University 0348 49,282,632 49,282,632 WV School of Osteopathic Medicine 0336 9,596,404 9,596,404 Bluefield State College 0354 6,383,221 6,383,221 Concord University 0357 10,476,415 10,476,415 Fairmont State University 0360 18,600,341 18,600,341 Glenville State College Shepherd University 0363 6,446,942 6,446,942 0366 12,683,829 West Liberty University West Virginia State University Subtotal 0370 9,102,662 12,683,829 9,102,662 0373 14,292,704 14,292,704 437,903,333 0 0 437,903,333 MISCELLANEOUS BOARDS AND COMMISSIONS Adjutant General - State Militia Adjutant General - Military Fund Subtotal TOTAL GENERAL REVENUE 0433 17,634,268 0605 157,775 17,792,043 0 0 4,575,383,767 (36,908,767) 30,641,000 17,634,268 157,775 17,792,043 4,569,116,000#11(1) Adjusted DEPARTMENT / Agency Description Fund Base FY 2021 (2) (3) Adjustments Improvements LOTTERY (4) Governor's Recommendation FY 2022 Adjustments/Improvements Explanation ADMINISTRATION Education, Arts, Sciences and Tourism Debt Service Fund 2252 10,000,000 10,000,000 COMMERCE Tourism 3067 Division of Natural Resources 3267 6,732,425 3,443,151 EDUCATION State Department of Education 3951 School Building Authority 3963 18,883,375 18,000,000 (4,526,005) 6,732,425 3,443,151 14,357,370 Funding moved to General Revenue Fund 0313 18,000,000 ARTS, CULTURE, AND HISTORY Culture and History 3534 4,115,157 151,005 Library Commission 3559 11,513,700 4,266,162 State match for federal grants: competitve arts, historic preservation program, and Save the Music. 11,513,700 SENIOR SERVICES Bureau of Senior Services 5405 42,856,387 2,000,000 44,856,387 Seniors Nutrition Program HIGHER EDUCATION POLICY COMMISSION Community & Technical College 4908 5,000,000 5,000,000 Higher Education Policy Comm. 4925 3,018,744 3,018,744 West Virginia University 4185 3,646,625 3,646,625 Marshall-School of Medicine 4896 TOTAL LOTTERY 598,436 127,808,000 598,436 (4,526,005) 2,151,005 125,433,000#12(1) Adjusted DEPARTMENT / Agency Description Fund Base FY 2021 (2) Adjustments Improvements EXCESS LOTTERY (4) Governor's (3) Recommendation FY 2022 COMMERCE Division of Natural Resources 3277 1,505,000 EDUCATION School Building Authority (Bond) 3514 19,000,000 HEALTH AND HUMAN RESOURCES Div. of Human Services 5365 16,302,960 REVENUE 1,505,000 19,000,000 16,302,960 Lottery Comm.-General Purpose 7206 65,000,000 65,000,000 Lottery Comm.-Refundable Credit 7207 10,000,000 10,000,000 Lottery Comm.-Sty Fnds/Purposes 7213 61,022,040 61,022,040 Racing Commission 7308 2,000,000 2,000,000 HIGHER EDUCATION POLICY COMMISSION PROMISE Scholarship 4295 29,000,000 29,000,000 Improvement Fund (Bond) 4297 15,000,000 15,000,000 MISCELLANEOUS BOARDS & COMMISSIONS Water Development Authority 3390 46,000,000 46,000,000 Economic Development Auth (Bond) 9065 19,000,000 19,000,000 Cacapon and Beech Fork Debt Service 9067 2,032,000 State Parks Lottery Debt Service 9068 4,395,000 2,032,000 4,395,000 TOTAL EXCESS LOTTERY 290,257,000 0 0 290,257,000 Adjustments/Improvements Explanation