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Why West Virginia has a surplus

West Virginia Governor Joe Manchin

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TEXT OF INTERVIEW

KAI RYSSDAL: State workers in West Virginia are getting some good news in a gloomy economy. With an unexpected $65 million surplus, West Virginia Governor Joe Manchin is spreading the wealth. He wants to give full-time state employees a one-time $500 salary ehnahcement, he's calling it. Governor Manchin, good to have you with us.

Gov. Joe Manchin: Good to be with you.

Ryssdal: How did you wind up doing this, earn $65 million in surplus?

Manchin: We did a complete inventory, in trying to get our financial house in order. And we had some of the four best years we've ever had in the history of the state. And having those record years we've had for revenue, we also downsized state government, paid off debt and did some things very responsible. And what we had was $57 million of excess, more than what we anticipated from our excess lottery. And we had anywhere between $8 to $15 million in our general revenue.

Ryssdal: So this came from lottery winnings. So West Virginians are playing a lot of lottery then.

Manchin: Well, there's more out of state people coming in, thank God, than there is West Virginians. The legislature's been very good, very disciplined. They did not spend it or appropriate it for other things. And the workers and the state workers basically lived and did not spend the money that was not appropriated for them.

Ryssdal: Overall though governor, how is the economy doing in West Virginia?

Manchin: Our economy is holding. We're having difficulties, our unemployment is 9.4 percent, which is very concerning to me. But basically, we're living within our means. That's the most important thing and we made the adjustments. And I believe that we should be able to share what we do. This is one way for me to say, thank you on behalf of the people of West Virginia for the job you've done. All the state workers, all the teachers, all the service people, everybody.

Ryssdal: Have you had to make any cuts to the state work force in the last couple of years?

Manchin: I have not made any cuts to the state work force. What I've been very careful in doing, Kai, is that I have not increased state employment. When we have anybody that retires or leaves the system, you have to exercise and show a need to replace that person or why we should continue to be hiring. So we had a lot of attrition that we have not replaced.

Ryssdal: When you speak with your fellow governors, do they pull you aside at these big conferences you guys go to and say, "Hey Joe, how are you doing this?"

Manchin: Well, we talk a lot. I just say we've been blessed. We really have. But we had to get our house in order before this ever hit. There's a correction, a worldwide correction going on, and every state has to go through these corrections. I just knew you couldn't run a state the way we had been doing it in the past. I knew there was some changes that need to be made and we just hit it perfectly, timing-wise.

Ryssdal: With today's economic numbers, governor before I let you go, are you now pretty hopeful that we've seen the worst of it and things are going to get better?

Manchin: The best bet is that it's going to last a little longer than any of us would like to see; it's not going to be a quick turnaround or it's not going to be a prolonged, four or five years out. With that being said, we're going to have to work our way out of this and making sure we're all in sync. If not, I can guarantee you, this boat won't float.

Ryssdal: Governor Joe Manchin from the state of West Virginia. Governor, thanks so much for your time.

Manchin: Thank you so much.

Pavanne Pettigrew's picture
Pavanne Pettigrew - Aug 7, 2009

Governor Manchin neglected to point out that this one-time pittance to state employees is a mere one-one-hundredth of the ANNUAL raise he himself received. As we watch him spending our tax dollars on his lavish lifestyle like a drunken sailor, some state employees are so poorly paid they are on foodstamps! The condition of state government in West Virginia is appalling, certainly nothing to brag about. When Manchin crowed that he'd reduced the size of state government by not filling "non-essential" positions as they were vacated, he neglected to add that he admittedly considers ALL state employees non-essential (elected potentates excepted, of course.) As a result, the citizens are receiving fewer and poorer services. More laws and regs are going unenforced. More tax revenue is lost. And that's one reason you saw so little wildlife, Ms Tobert. This man wants to be President of the United States, so take a very close look, America. The idol has feet of clay.

Dennis Egan's picture
Dennis Egan - Aug 3, 2009

Why not use this to keep the promises made to students with the promise scholarship instead of capping them. Nothing will insure the states growth more than education.

Larry Notes's picture
Larry Notes - Aug 2, 2009

I forgot to say that is only 10% down on a $5,970,000 million to bring jobs to WV. Other projects paid out millions for short time jobs. This pans out to only $53,000 per long term jobs. Charles wants to pay green job wages. $12.00 per hour and $400.00 extra for insurance. This wouuld be the lowest pay out for a company to build a power station anywhere in the world. Wake up and help this get started in WV. 10.2 megawatts of brown power going green. In this world of cap and trade, this is a winner. High tech jobs in Mcdowell WV, where could this go bad? You can find Showalter Micropower on youtube, Google it,on Pickens Plan, Look at this Joe and do some good with WV money. Oh yes on FACEBOOK he said he would return $500,000 to the county and people of McDowell in the form of grants over 15 years. Whom else would do this?

Larry Notes's picture
Larry Notes - Aug 1, 2009

Put $600,000 into Showalter Micropower and start the first small clean powerplant in WV to use fuels. Natural gas. SMP would go into McDowell couty that is in need of good paying jobs. 50+ building jobs-11 direct high paying jobs-33+ indirect area jobs. SMP would use greenhouses to fast grow trees to be used as carbon sinks. The trees would be replanted on old mine sites to help off-set other carbon producers in the state. The trees would be free of charge to anyone who would replant them.

Joy Torbert's picture
Joy Torbert - Aug 1, 2009

I gave birth to my first child in West Virginia in 1975, and since it had been years since being there, we took our RV there last week to camp. It was on our way home that we heard this interview. I was greatly impressed that WV has been pulling together to balance its budget and live within its means.(would that the whole country could have such wisdom and restraint) I also know state workers in our state(DE) have gone quite a while without a raise, and they continue to serve, so I am sure likewise the West Virginia workers are deserving of some fiscal appreciation, so I don't have too much disagreement with what the good governor is trying to do. My big question - where is the wildlife that used to teem in the mountains of WV? It was eerily silent in the evening. No crickets, no frogs crocking, no buzzing mosquitoes - (as much as I hate them), no owls hooting. There was no rejoicing birdsong at dawn - just a couple crows having an argument. I hear more wildlife in my backyard in Delaware than we heard on this adventure. Maybe the good governor could spend a little money to "re-animate" his quiet state. Or is it too late??

clay franken's picture
clay franken - Jul 31, 2009

As a former West Virginian, I am disappointed that the money was not given back to the people in a tax cut. Alternatively, Gov Manchin could have saved the money in a rainy day fund, like the govt of Norway which now has 500Billion from oil revenues.