State Sen. Walt Helmick is a fiscal realist and a conservative when it comes to the state budget. If Helmick is worried about such matters, all thoughtful West Virginians should be concerned, too.
Helmick, D-Pocahontas, is chairman of the Senate Finance Committee. In that role he takes a refreshing "there is no free lunch" position in regard to government spending and taxes. Earlier this year, for example, he pointed out to a group of journalists that state leaders probably deserved to be patted on the back for wise budget decisions-but that factors beyond their control were responsible to an extent for the state's fiscal health. He noted high revenue from the coal industry and legalized gambling as two contributors.
Legislators this past week approved a proposal from Gov. Joe Manchin to give West Virginia residents some relief from high gasoline prices. It would come in the form of postponing an increase in state gasoline taxes that is scheduled to go into effect in January.
This is good news for West Virginia residents paying $4 or more for a gallon of gasoline. But limiting revenue from gasoline taxes deprives the State Road Fund of money it needs sorely. That is Helmick's concern.
Manchin's proposal was to offset the tax limit by giving the road fund $40 million expected in surplus funds at the end of the current fiscal year. Though Helmick joined Manchin in announcing the plan, he added that, "I hope this is the last time."
Money from the state's general revenue fund should not be transferred to the highway and bridge fund on a regular basis, Helmick explained. But he worries that the move will set a precedent encouraging lawmakers to hold gasoline taxes down and make up for the difference from the general revenue fund.
In some ways, Helmick's concern is misguided. State government commits itself to provide a variety of services and collects taxes from many sources. As long as revenue from whatever source is funding any government program, what's the worry?
It is that providing supplemental appropriations to the State Road Fund will mask that account's serious deficiencies, while reducing the amount of money available for other programs.
In that concern, Helmick is right. West Virginians need to find a better way to fund bridge and highway repairs and improvements.
Attention to that should not be diverted by the belief that the general revenue fund can continue to be tapped to make up for deficiencies in the current State Road Fund.
