W.Va. Senate Votes To Hike Emergency Reserves

By: Associated Press Email
By: Associated Press Email

CHARLESTON, W.Va. (AP) - West Virginia would increase its already hefty emergency reserves through legislation from Gov. Earl Ray Tomblin passed by the state Senate.

Monday's 33-1 vote sends the proposal to raise the target size of the Rainy Day fund to the House.

This main reserve deposits surplus funds until it equals 13 percent of general revenue spending. It's at that level. Tomblin's bill would boost its capacity to 15 percent.

The bill would send future surpluses to a new fund for road, water and sewer projects. It also dedicates certain reserve investment earnings to Medicaid. These provisions are meant to sway critics of increasing state reserves.

West Virginia has one of the strongest state reserves. But it isn't expecting a surplus this budget year. Revenues fell to $49 million behind last month.

(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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