photo by: W.Va. Legislative Photography

Del. Amy Summers, R-Taylor, questions the effectiveness of a proposed child care tax credit during a House Finance Committee meeting Sunday.

CHARLESTON — After a six-day break to allow behind-the-scenes negotiations on Gov. Jim Justice’s 5% income tax cut proposal to continue, a special session of the West Virginia Legislature continued Sunday with new bills and a look at Justice’s child care tax credit.

Lawmakers gaveled in Sunday night after Justice called the Legislature into special session last Monday to continue work on the remaining 22 bills he placed on the special session call last week. Justice further amended the call Saturday, adding three supplemental appropriations for lawmakers to consider, including $10 million for the state Department of Agriculture for drought relief, $1 million for the Department of Education for school safety and $5 million for a child care expansion pilot program through the Department of Economic Development.

The Senate version of the child care expansion bill, Senate Bill 2029, passed the Senate 27-2 Sunday night. The School Building Authority bill, Senate Bill 2031, passed 28-1. The drought funding bill, Senate Bill 2032, passed 29-0. The three Senate bills were sent to the House for consideration.

Justice also added a bill creating an appropriation line item for the SBA for the $5 million already appropriated for the SBA for public charter school building construction projects.

Lawmakers are already considering two bills, Senate Bill 2027/House Bill 227, giving the SBA the statutory authority to accept applications from public charter schools to request funding from the SBA new building purchases and project costs.

SB 2027 moved to third reading in the Senate and HB 227 was recommended for passage by the House Education Committee last week.

The Senate also laid over Senate Bill 2025, Justice’s proposal to cut the personal income tax rates by an additional 5%, with the bill remaining on second reading. The tax cut would return approximately $115 million to taxpayers when fully implemented in fiscal year 2026 beginning in July 2025.

The tax cut itself would kick in beginning January of next year, along with a 4% personal income tax cut due to meeting a trigger and annual tax cut formula within the tax reform package passed by lawmakers in 2023. Combined with the 21.25% personal income tax cut that went into effect in 2023 and the 4% cut, a 5% cut would take the state to more than 30% in cuts under Justice.

The House referred their version, House Bill 225, to the House Finance Committee for further review, though the bill was not on their Sunday afternoon agenda. House Finance Committee Chairman Vernon Criss, R-Wood, said negotiations between Gov. Justice and legislative leadership continue.

“It’s going to show up on the agenda, but…until I know for sure what’s going on, I can’t take up what I don’t know,” Criss said.

Criss’ counterpart, Senate Finance Committee Chairman Eric Tarr, R-Putnam, has expressed skepticism about whether the state can afford the 5% personal income tax cut going forward in future budgets. But Criss said he would support the 5% cut or any other cut the Legislature and the governor can agree on.

Committee members reviewed three supplemental appropriations and House Bill 226, which would provide a non-refundable tax credit against the personal income tax in the amount of 50% of the allowable federal child and dependent care credit for those already receiving the federal tax credit, effective retroactively to Jan. 1 of the current tax year.

If passed, the credit would return approximately $4.2 million to eligible taxpayers according to a fiscal note from the state Department of Revenue for a similar bill Justice proposed during the 2024 legislative session earlier this year. The maximum tax credit benefit for a family with one eligible child could be nearly $1,500 per year. According to a recent report from the Department of Human Services, there are 1,391 licensed child care providers in the state, with an average monthly cost of $672 per month per child.

But some lawmakers questioned how effective the tax credit would be for families in need and whether there are enough open child care slots for families wishing to take advantage of this new tax credit. According to a recent report from the West Virginia Chamber of Commerce, 24 counties have less than 250 licensed early childhood education slots, with 12 counties having less than 100 slots.

“We’re going to provide a little bit of money for people to pay towards their child care. However, we have a big demand and not enough spots,” said Del. Amy Summers, R-Taylor. “Isn’t this going to increase the amount of people who want to use it for the decreased spots we already have? From an economic standpoint, I don’t see how this helps.”

Committee members rejected an amendment to HB 225 offered by Del. John Williams, D-Monongalia, that would have made it a refundable tax credit.

The committee recommended for passage House Bill 210, appropriating $40 million for capital projects at rural hospitals. The Senate version of HB 210, Senate Bill 2010, passed the Senate Sunday night in a 29-0 vote.

The committee also recommended the following supplemental appropriations to the full body: House Bill 213, appropriating $125 million for the economic enhancement grant fund and $10 million for the West Virginia Jobs Investment Trust through the Department of Economic Development; and House Bill 220, appropriating $13.6 million for the West Virginia School for Osteopathic Medicine for capital outlay, repairs and equipment. The Senate version of HB 220, Senate Bill 2020, passed 29-0.

Action was completed Sunday on House Bill 205, providing more than $15.6 million to the West Virginia National Guard for capital outlay improvements and its Recruit WV employment program.

The Senate passed Senate Bill 2017, appropriating $300,000 for a proposed statute project for the State Capitol Building’s upper rotunda. The proposed project would see statues of West Virginia’s first governor, Arthur Boreman, and presidents George Washington, Thomas Jefferson and Abraham Lincoln placed in the upper rotunda. The bill passed 28-1 and heads for the House next.

“(Capitol architect) Cass Gilbert had an original plan for statutes that would go in the four (alcoves) out there,” Tarr said.

A statue of U.S. Sen. Robert C. Byrd already exists in the upper rotunda. State Sen. Mike Caputo, D-Marion, raised concerns about the proposed project and the possible removal of the Byrd statue.

“He’s done a lot for West Virginia, and he is beloved by many,” Caputo said. “If there is four going in up there, that means one of them has to go … I think it is clear what is going to happen here. Senator Byrd is going to be tucked into a corner somewhere. … I just think it is wrong.”

The Senate also amended and passed unanimously Senate Bill 2021, a supplemental appropriation for the Division of Correction and Rehabilitation; Senate Bill 2022, a supplemental appropriation to the Bureau of Juvenile Services; Senate Bill 2024, a supplemental appropriation for the Regional Jail and Correctional Facility Authority.

In a social media post Sunday, Justice urged lawmakers to continue to give his special session bills full consideration.

“The Legislature is back in special session today, and I’m confident we’ll get BIG things done,” Justice said. “I know you’re asking for real progress: tax cuts, childcare help, new jobs, safer schools, and drought relief. Let’s get bills signed and deliver what our state deserves–prosperity!”