Post by Logan on Apr 24, 2016 9:24:08 GMT -6
West Virginia bond rating downgraded; leaders told to brace for ‘worst-case scenario’
As the West Virginia budget impasse heads into its sixth week, the Tomblin administration is advising legislative leadership to prepare for a worsening economic outlook.
Without giving precise numbers, Revenue Secretary Bob Kiss said Friday he told leadership to anticipate a “worst-case scenario” for April revenue collection as personal income tax collection — of the two biggest state revenue sources — are falling well below projections.
“One of the things that looks particularly bad is the nonresident withholding taxes,” Kiss said Friday.
He said two factors are driving that: A downturn on royalties on mineral interests owned by out-of-state residents and a drop in payroll withholding for nonresident oil and gas workers, as low natural gas prices are putting a damper on the Marcellus Shale boom.
Kiss said the drop in income tax collection is a ripple effect of the ongoing downturn in the energy sector, a downturn that he said was a key factor in Standard and Poor’s downgrade in the state’s bond rating from AA to AA-.
See more at: www.wvgazettemail.com/news/20160422/wv-bond-rating-downgraded-leaders-told-to-brace-for-worst-case-scenario#sthash.E8qsM8PU.dpuf
As the West Virginia budget impasse heads into its sixth week, the Tomblin administration is advising legislative leadership to prepare for a worsening economic outlook.
Without giving precise numbers, Revenue Secretary Bob Kiss said Friday he told leadership to anticipate a “worst-case scenario” for April revenue collection as personal income tax collection — of the two biggest state revenue sources — are falling well below projections.
“One of the things that looks particularly bad is the nonresident withholding taxes,” Kiss said Friday.
He said two factors are driving that: A downturn on royalties on mineral interests owned by out-of-state residents and a drop in payroll withholding for nonresident oil and gas workers, as low natural gas prices are putting a damper on the Marcellus Shale boom.
Kiss said the drop in income tax collection is a ripple effect of the ongoing downturn in the energy sector, a downturn that he said was a key factor in Standard and Poor’s downgrade in the state’s bond rating from AA to AA-.
See more at: www.wvgazettemail.com/news/20160422/wv-bond-rating-downgraded-leaders-told-to-brace-for-worst-case-scenario#sthash.E8qsM8PU.dpuf