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In Logan County, an outdoor theater production won $7,000 for new lighting. In Kenova, $21,150 was spent paving the library parking lot. In the Eastern Panhandle, Berkeley County received about $150,000 for park and baseball field improvements. And just 10 miles from the Capitol, the Kanawha County Commission plans to spend $1 million on a kitchen and bathroom expansion at the Shawnee Sports Complex in Dunbar.
And over the past few years, millions of people have participated in race car sponsorship.
What all these expenditures have in common is that they were funded through the Governor’s Private Emergency Fund. This little-known money is the state’s main account for dealing with natural disasters, as well as essentially money that the governor can spend primarily as he pleases.
Lawmakers put a certain amount of money into the fund each year. A portion is earmarked for specific projects, while the rest is often earmarked for spending as the governor deems appropriate. And unlike most budget items, you won’t run out of money if it goes unused.
Millions of dollars have been authorized to be put into the fund every year since the attorney general took office. But the governor typically spends less than he is allowed to spend each year, so during his term as governor the total amount in the fund has swelled to $567 million as of this month.
But even as that funding grows, natural disasters continue to take a toll on the state. The Pew Charitable Trusts estimates there were 1,600 floods in West Virginia between 2010 and 2021. Matt Saunders, disaster planning expert at the trust, said climate change meant the problem would get worse.
“What we’re seeing is a growing trend of more severe and more frequent disasters, and we’re not getting the resources we need,” Sanders said.
Now, Justice is asking for an additional $108 million from the fund. Just under half of that money will go to the Flood Recovery Trust Fund, which has been empty for years. Sanders said he’s off to a good start, but ultimately will need more money from the emergency fund to protect West Virginia from disaster.
A spokesperson for Justice did not respond to repeated requests for comment about the fund.
These types of funds are not uncommon. Forty-six states and the District of Columbia have some type of fund for disaster or emergency situations. But West Virginia is one of nine states with a “contingency account” that gives the state broad authority over how the money is spent.
According to the annual budget proposal, the private emergency fund is intended for “accidental, unforeseen, emergency, or unplanned events,” and not for the governor’s day-to-day operations. However, state codes are less specific. All it says is that the fund can pay any costs and “such other amounts as the Governor deems necessary or appropriate” without the money attached to the legislation.
That’s a problem, according to Sean O’Leary of the West Virginia Budget Policy Center. O’Leary said there was nothing wrong with having a discretionary fund, but he was concerned about its increased use for economic development projects in recent years. Instead, O’Leary said the state has access to a rainy day fund, which can also be used for emergencies but is rarely used.
“Rather than using the emergency fund directly to respond to emergencies, I think it would be better to utilize it more often through a civil emergency fund where the governor can get things done a little bit more,” O’Leary said. .
Unlike most funds in the state, which are zeroed out at the end of the budget year, authorizations for spending from the Private Emergency Fund roll over from year to year. As a result, the amount authorized for expenditure into the Fund is approximately $567 million.
Additionally, legislators can ask the governor to use the funds for projects within their districts. That’s what happened with new lights for a Logan County play and a parking lot in Kenova.
As a 2015 report from the Federal Government Accountability Office shows, Congress has the power to authorize funds to be placed in accounts for specific purposes. For example, millions of dollars have been poured into Milton’s sea wall to match its construction cost, said Rep. Dan Linville, R-Cabell, who represents the district.
And last year, Congress tapped the Civil Emergency Fund to use $282 million in surplus money to improve facilities at universities, jails and prisons.
House Finance Chairman Vernon Criss (R-Wood) said the reserve fund would allow for quick adjustments in emergencies, especially when Congress is not in session. Chris said one reason the fund has increased in recent years is because of matching federal grants.
The coronavirus funding also indirectly increased the fund. The $20 million disbursed from the fund in 2021 was repaid through coronavirus aid, according to state auditor records.
But Chris said other uses of the funds, such as the roughly $2.5 million spent on race car sponsorships, are well within the governor’s rights.
“It’s up to his discretion and a business decision on his part,” Chris said.
While the governor may have great freedom in how he spends the money, the power to hold the purse strings still lies with the Legislature. But they also benefit from this fund. The new lighting for the outdoor theater comes at the request of Rep. Margitta Mazzocchi, R-Logan. The parking lot was at the request of Wayne Democratic state Rep. Rick Griffith. Each representative can request up to $25,000 from the fund each fiscal year, Chris said.
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