Cuts loom over State Agencies

Department heads at West Virginia State Agencies are dealing with the news that they've got to cut spending by 7.5 percent for the fiscal year that begins next July. This comes because of slow growth in state tax collections and rising Medicaid costs, not to mention a sluggish coal mining industry. A significant funding gap is expected, and there may be as much as $100 million in cuts across the board. Governor Tomblin's administration is deciding now whether West Virginia should expand Medicaid coverage to families with incomes of up to 133 percent of the federal poverty level, which is part of the new federal healthcare package.