As Revenue Struggles, State Cuts Come
With dipping coal and natural gas revenue, Gov. Earl Ray Tomblin is cutting most state agency spending by 4 percent, or more than $100 million total., including canceling holiday parties and continuing a hiring freeze. Tomblin pointed to “unexpected and unprecedented” drops in dollars from the severance tax on unearthing resources like coal and natural gas. State public school aid will see a 1 percent reduction. Coal production is down 15 percent compared to last year. Natural gas sales are up about 30 percent, but prices have dropped.