Other states are facing massive budget problems just like Oklahoma is, thanks to dwindling revenue from oil and gas and coal. While the Oklahoma legislature blames its problems mostly on the energy downturn and what it’s done in the Oklahoma oil patch, West Virginia’s leaders struggle with the same issue. So do leaders in Alaska.
Just as governor Mary Fallin called for a hike in cigarette taxes to offset the loss of gross production tax revenue, West Virginia Gov. Earl Ray Tomblin made the same suggestion. And the legislature responded by killing his idea in committee. West Virginia is facing a $466 million gap in the 2017 budget. Leaders fear that deeper cuts are looming for the state. West Virginia’s coal severance tax revenue dropped by 26 percent in the first half of this budget year and cash from natural gas has fallen 40 percent.
Just like Oklahoma, West Virginia used Rainy Day money in 2014, again last year and plans to use another $52 million to shore up the last few months of the current budget.
In Alaska, the impact of low oil prices is being felt as the state is staring a $3.5 billion budget gap in the face. Wyoming is facing budget challenges too, but since it is the nation’s leading coal-producing state, it has a Rainy Day fund of $1.8 billion. The Wyoming legislature used $220 million from the fund to help with a two-year budget.
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