Newsletter 2016-49 December 9, 2016 GOVERNOR-ELECT JUSTICE CHOOSES CASEY AS CHIEF OF STAFF Governor-elect Jim Justice has chosen former West Virginia Democratic Party chair and congressional candidate Nick Casey as his chief of staff, Justice announced this week. Casey, who is a Charleston attorney and CPA, served as Democratic Party chair during part of U.S. Senator Joe Manchin’s time as governor. Casey ran for Congress in 2014 and was defeated in the fall election by Republican Congressman Alex Mooney. Casey was the treasurer of Justice’s successful gubernatorial campaign. Governor-elect Justice will be sworn into office January 16, 2017. JUSTICE NAMES POLICY COMMITTEE CHAIRS Governor-elect Justice has named 27 people to chair policy committees that are expected to advise his transition team and incoming administration on some of the biggest issues affecting the state. The chosen policy committees are focused on economic development, public education, higher education, healthcare, the drug epidemic, infrastructure, tourism, and energy and the environment. The list includes David Alvarez, Energy Transportation LLC, for the Energy and Environment Task Force; Woody Thrasher, Thrasher Engineering, on the Economic Development Task Force; and CAWV Executive Director Mike Clowser on the Infrastructure Task Force. Members can see the full list of policy committee chairs by clicking here. CAWV LEGISLATIVE COMMITTEE SEEKING MEMBERS’ INPUT ON ISSUES The 2017 session of the West Virginia Legislature will start 30 days later due to this year being an election year. The Legislature will convene on the second Wednesday in January, January 8, and recess until February 8. The session will not end until April 8. The CAWV Legislative Committee is seeking recommendations from members on legislation the CAWV should consider for introduction. In addition to infrastructure funding, the CAWV will be reviewing tax issues, highway safety initiatives and regulatory reform, among other items. Roger Thomas, CAWV Legislative Committee Chairman, asks members to complete the 2017 CAWV Legislative Questionnaire. Please list any recommendations for proposed legislation and the committee and Board will review for possible introduction this session. Members can access the questionnaire by clicking here or visiting https://goo.gl/forms/os3faLycrXWTEJ6E3. BUDGET SHORTFALLS REQUIRE LOOKING AT REVENUE OPTIONS FOR HIGHWAYS AND INFRASTRUCTURE, NEW CHIEF OF STAFF STATES Department of Revenue Cabinet Secretary Bob Kiss told legislators that West Virginia’s revenue numbers are short of estimates in November by $4.1 million. For the first five months of fiscal year 2017, collections have fallen $91.5 million below estimates, but are $13.2 million above last year’s receipts. Secretary Kiss said if it weren’t for 2 percent mid-year across-the-board cuts imposed by Gov. Tomblin and the money from the old workers’ comp fun into the general fund, the shortfall could have been worse. Governor-elect Jim Justice’s new chief of staff, Nick Casey, said it is clear the key issues for the 2017 legislative session will be growing the economy and addressing what is now projected as a more than $400 million shortfall in the 2017-18 state budget. Speaking for himself, Casey said he believes all revenue options, including short-term tax increases, will have to be part of the budget discussion. “I think revenue sources, including taxes, have to be put on the table to at least be talked about,” he said. He cited the gas tax, which is set to drop for the third straight year, on Jan. 1, under a calculation of a portion of the tax that is based on wholesale gas prices for the previous year. That cut is projected to save a typical driver about $28 a year but cost the state Road Fund about $12.5 million in revenue. “You’re saving a few bucks a year, but spending $300 to get a front-end alignment,” Casey said, illustrating the false savings of that tax cut. Restoring the tax rate to where it was three years ago would provide more than $36 million in revenue for the Road Fund, Casey said, adding, “I guess you could say that’s a tax increase.” Another example he cited is tolls on the West Virginia Turnpike, which bring in $85 million a year in revenue, paid predominately by out-of-state travelers but unpopular with many residents of counties served by the Turnpike. “Tolls on the Turnpike come off in a couple of years,” Casey said of current law, which will repeal the tolls when 30-year bonds are paid off in 2019. “That’s certainly important to many people but, on the other side, you can’t bond without tolls.” Casey said issuing bonds for infrastructure projects could be one option to help close the budget deficit and jump-start the economy. “Hopefully, there are some bonding opportunities out there,” he said. “We have a very deliberative governor-elect,” Casey said. “I’m impressed.” CAWV OPEN HOUSE A GREAT NETWORKING OPPORTUNITY Many members and guests attended the CAWV’s Holiday Open House on Tuesday, December 6. CAWV members enjoyed hors d'oeuvres, drinks and conversation during the evening event, making it a great opportunity for members to get together. The CAWV staff would like to extend a very special thank you to members who used the event to donate dozens of toys to benefit the U.S. Marine Reserves’ “Toys for Tots.” The CAWV Young Contractors Forum also gathered a large amount of toys at their annual Fall Golf Outing for the “Toys for Tots” program. Because of the joint efforts of CAWV members at these two events, the CAWV has been awarded the United States Marine Corps Reserve “Commander’s Award” for outstanding support of the 2016 “Toys for Tots” program. CAWV ANNUAL REPORT 2016 SENT TO MEMBERS The 2016 CAWV Annual Report was mailed to members last week. The report outlines some of the key issues addressed by the association during the past year. The report includes information on the association’s legislative issues, committee activities, accomplishments over the past year, and updates on the scholarship and association affinity programs, as well as comments from current CAWV President C. R. Neighborgall. Members can see the report attached to this week’s Newsletter. EXPO EARLY PAYMENT DEADLINE APPROACHING JANUARY 15, 2017 Numerous booths have already been reserved for the March 22 and 23 show at the Charleston Civic Center. Last year’s exposition featured nearly 300 exhibitors with 465 exhibit booths and nearly 5,000 attendees from 31 states and two foreign countries. Members can benefit from participating in the show and attending. Take time now to reserve a booth or ad space in the show program, sign up to be an Honor Exhibitor (non-displaying), or consider sponsoring an event or marketing item. Click here to view the EXPO 2017 sponsorship opportunities. Also, seminar proposals are being accepted for 2017. Click here to submit your seminar/meeting proposal. Contact Cassidy Webb, EXPO Show Manager at [email protected] with any questions. Full details are available online at www.wvexpo.com. REMINDER: Save the dates! EXPO will be March 22 and 23, 2017 at the Charleston Civic Center. The ‘Early Payment Discount’ deadline is January 15, 2017. Reserve your booth today to get $50 off each booth. YOUR HELP IS NEEDED IN FINALIZING YEAR-END BOOKS As we approach the end of the year, we ask your assistance in finalizing our books. Contractors returning their Third Quarter Volume Dues Statement would greatly assist this process. CAWV auditors will be contacting members confirming outstanding accounts. If you have any questions, please contact Wendy Long at (304) 342-1166 or email [email protected]. CONTRACTORS ASSOCIATION OF WEST VIRGINIA ANNUAL REPORT 2016 From the ThePresident Contractors Asso- of the Young Contractors Forum (YCF), to serve development in West Virginia. ciation of West Virginia on the board. YCF has been active in hosting There is no doubt legislators have a is hard at work ev- a number of educational and networking func- daunting task when they convene their session ery day to give CAWV tions to give our younger members an oppor- in 2017. The state’s budget has a nearly $300 members a compet- tunity to learn and to develop skills that will million projected deficit and dollars available itive edge in today’s lead to success in their companies. We think for construction programs will continue to be tight construction mar- YCF participation on the board will cultivate the stressed. This is reflected in CAWV mem- ket. Our committees next generation of leaders in the construction bers’ workload. Construction employment and task forces work industry as well as our association. increased in 35 states between October 2015 constantly on issues The CAWV looks forward to working with and October 2016. West Virginia’s construction that affect our industry and our members. Governor-elect Jim Justice to advance issues employment remained stagnant during the While addressing the needs of today, the to create jobs and economic development same period. This is why the CAWV is ‘hard at CAWV Board of Directors is looking to the fu- opportunities for all West Virginians. We will work’ ensuring that our members’ voices are ture. Our Strategic Planning Committee has promote our position that investment in our heard loud and clear to show a direct correla- charted an action plan that will keep CAWV state’s vast infrastructure of roads, bridges, tion between investment in infrastructure and relevant and vibrant with a steady inflow of water and sewer systems, schools and other jobs in our state. new members and ideas. We are undertaking public works projects is the best way to imme- This is what the CAWV has always done: a membership campaign and we will work to diately put thousands of people to work, both Advocate for the interests of contractors and engage these new members in our commit- in and outside the construction industry.