CHARLESTON — The state Senate, after a couple of days of delays, passed a bill representing pay raises for some state employees and another phasing out taxes on Social Security benefits.
The bills are key components of what could shape up as the state’s general revenue budget. The Senate earlier tied each of the bills to economic triggers, but backed off that format on Day 60 of the legislative session.
The pay raises for state employees and cut for the state taxes on Social Security were two of the main proposals advocated by Gov. Jim Justice in his State of the State address.
The Senate bills completed the legislation because the House of Delegates had already voted in favor. So now they go to the governor for his signature.
House Bill 4883 provides pay increases for state workers whose pay scales are in state code. So, state police personnel and public school educators would be affected.
That means state police personnel would receive a $2,900 annual salary increase. Teachers would receive a $2,460 annual pay increase. And school service personnel would receive an additional $140 a month.
Other state employees in line for raises could be reflected in the general revenue budget once it passes.
“There’s no guarantee,” Senate Finance Chairman Eric Tarr, R-Putnam, said when questioned about other workers’ pay raises by Sen. Mike Caputo, D-Marion.
The Social Security tax phase-out passed the Senate on a 32-0 vote.
The estimated financial effect of fully eliminating income taxes on Social Security benefits would be a little more than $37 million.
The phase-out would mean a 35% cut retroactive to Jan. 1, 2024; 65% in 2025 and 100% in 2026.
The legislation would build on a 2019 bill signed into law by the governor to exempt Social Security income from personal income taxes for most West Virginians, particularly those in lower tax brackets. That was also a three-year phase-out.
“That money was earned by each of those workers,” said Sen. Mike Woelfel, D-Cabell. “The time has come for us to eliminate this onerous tax.”
