West Virginia Higher Education Board of Governor’s Summit August 1, 2014 State Budget Office 1

2 The West Virginia Fiscal Picture Little or No Revenue Growth in FY 2014 or FY 2015 Coal Mining production in decline; Gas is picking up slack Foreign Exports key Baby Boomers becoming senior citizens Teacher Retirement System: Only 19 More Years Funding with 10%+ of Total General Revenue Workers’ Compensation Solvent by CY2016?

3 National Fiscal Concerns Federal funds make-up 1/3 of WV’s State Government Budget Federal Health Care & Medicaid – effect on economy? Future perpetual Federal budget deficits are still predicted Medicare, Medicaid & Social Security make up almost 2/3 of Federal spending Federal Government's accumulated debt continues to grow - $17.6 TRILLION (debt per citizen > $55,000, debt per taxpayer > $151,000) US GDP as of July 2014 = $17.3 Trillion

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12 State of West Virginia General & Lottery Appropriations % of DepartmentFY 2009totalFY 2015total Public Education $ 1,918,411, % $ 2,070,210, % Health & Human Resources 862,091, % 1,038,529, % Higher Education 483,015, % 475,060, % All Others 1,073,107, % 1,022,589, % Total $ 4,336,625,661 $ 4,606,390,058

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