Under the cloud of a likely gubernatorial veto, the West Virginia House of Delegates passed its version of the state's $4 billion 2016-17 budget plan (HB 101) on a 61-37 vote Friday, following more than two hours of debate.
Earlier in the week, Gov. Earl Ray Tomblin indicated that he will veto any bill that takes more than a few million dollars out of the state's Rainy Day emergency reserve funds to balance the budget.
The House bill passed Friday uses $143 million in Rainy Day funds to help close a $270 million shortfall in the 2016-17 budget. That became necessary after the only tax measure favored by House and Senate leadership, a $75 million hike in state tobacco taxes, was defeated Tuesday in the House.
The bill goes to the Senate, which is proposing an even larger raid on Rainy Day funds to close the budget gap.
However, House Finance Chairman Eric Nelson, R-Kanawha, said the door remains open next week to find consensus for tax increases or any other measures to make the budget more palatable.
"Our time here is not finished," Nelson said of opportunities to find funding alternatives when the special session resumes after a long Memorial Day Weekend recess.
As the special session concluded its 10th day, and the budget impasse reached day 76, Nelson reminded legislators that another milestone is looming on July 1, when state government will shut down if a 2016-17 budget isn't enacted.
"We're just a short time away from July 1, and all the services we've come to expect, and the obligations we have to our state employees," he said.
Earlier Friday, Democratic lawmakers called on legislative leaders to buckle down, work cooperatively, and come up with a responsible budget bill that would not be vetoed by the governor.
"I believe we need to make sure there's a balanced budget that doesn't raid the Rainy Day Fund," said Senate Minority Leader Jeff Kessler, D-Marshall.
House Minority Leader Tim Miley, D-Harrison, said he believes a majority of the House's 36 Democrats would support a proposal for a $1-a-pack cigarette tax increase. On Tuesday, 35 of 36 Democrats voted against a proposed 45-cent-a-pack hike, calling it a half-measure that would not raise sufficient revenue or effectively deter residents from smoking.
However, Miley noted that Democrats alone can't pass any revenue measures.
"Unless we have buy-in from the Republicans, it doesn't matter what we propose," he said.
The House budget bill does not make any substantive cuts to public education, higher education, senior services or Health and Human Resources agencies, fully funds Promise scholarships and provides $43 million in general revenue for PEIA employer premium increases - needed to avoid $120 million of "draconian" benefit cuts for public employees with PEIA health insurance.
While those areas are untouched, the bill does make nearly $200 million in spending cuts, cutting budgets for offices of statewide elected officials by 10 percent and cutting most other agencies by an additional 2 percent.
The bill also cuts or consolidates other offices, including cutting the budget of the Department of Education and the Arts by $2.1 million, with the directive that the office of secretary - occupied by Kay Goodwin - is to be eliminated by January 2017.
Delegate Larry Rowe, D-Kanawha, questioned whether it is constitutional to use the budget bill to restructure an Executive Branch department, and asked Nelson if Tomblin had signed off on the proposal.
"I can count on one hand the number of times I've talked to the governor during this process," Nelson responded.
"He has the power of the pen - he can drive a line right through this paragraph," the House Finance chairman added, referring to the governor's line-item veto power on the budget bill.
The budget also calls for consolidating the management of four Department of Transportation agencies - the Public Port Authority, Aeronautics Commission, the Division of Public Transit and State Rail Authority - into a single office.
Proponents of the bill described it as a compromise, or bridge, to get through the budget impasse.
"On this day, we have in front of us a budget that funds the essential services of the state in a way that allows us to live within the revenue we have," said Delegate John O'Neal, R-Raleigh, who broke with House leadership Tuesday to vote against the tobacco tax bill.
Critics say the bill doesn't resolve ongoing revenue problems.
"What message does it send to businesses looking to come into the state of West Virginia if we can't pass a balanced budget without using monies we've saved from the past?" said Delegate Tim Manchin, D-Marion.
The bill goes to the Senate, which laid over consideration of its version of the budget bill (SB 1001) for a third straight day to amend it into the House bill next week.
During a brief floor session Friday morning, before recessing until Tuesday afternoon, the Senate also concurred, and passed 30-0, a $63.7 million supplemental appropriations bill that transfers a number of funds - including $3 million in Rainy Day funding - to close shortfalls in the current 2015-16 budget year (SB 1002).
It was the first bill passed and sent to the governor during the special session.
Reach Phil Kabler at philk@wvgazettemail.com, 304-348-1220, or follow @PhilKabler on Twitter.