CHARLESTON, W.Va. (AP) - Most West Virginia agencies must cut their spending by 7.5 percent for the 2013-2014 budget year.
That's the word Monday from Gov. Earl Ray Tomblin's administration.
State government spends around $4.1 billion each budget year. Officials say that the modest projected revenue growth can't keep pace with costs. Medicaid is a key reason for this deficit threat.
The overall funding gap is 2 percent, but most agencies face 7.5 percent cuts because a number of areas will be exempt.
Those include Medicaid, public schools, prisons and services for veterans and seniors. The Division of Miners' Health, Safety and Training is also exempt, as are State Police pensions and debt service.
Officials are also bracing for a 4 percent drop in lottery revenues, and cite poorly performing Wall Street investments.