Governor Tomblin Issues Statement Following Standard & Poor's Rating Report

Statement

Gov. Earl Ray Tomblin today issued a statement following a notice from Standard and Poor's Rating Services announcing it has lowered West Virginia's bond rating to "AA minus':

"Throughout my years of public service, I've worked hard to create a strong West Virginia by improving the state's business climate, addressing our long-term liabilities and creating one of the strongest Rainy Day Funds in the country. Over the past four decades, we've made significant progress. Today's announcement by Standard & Poor's is disappointing, however it is not entirely unexpected as other states whose economies are largely dependent on the energy sector have experienced similar actions.

"During my State of the State address, I acknowledged the unprecedented shift that has taken place in our state and our nation and its impact on our state's coal industry. Across the country and around the world, the coal industry -- an economic driver that has supported West Virginia for generations -- is facing serious challenges. This is not a typical downturn. This one is different, and even the most optimistic among us realize it is unlikely that coal will ever reach the production levels of the past. That's why we are taking additional steps to diversify our state's economy including working to redevelop and find new uses for the former Hobet surface mine site, creating growth opportunities for downstream industries to support the region's growing natural gas sector, and recruiting major investors like Procter & Gamble. Now more than ever, these economic development efforts will play a critical role in our state's growth.

"Continued economic growth will take time, and in the short term it cannot fix the significant challenges we face as a state. For months, I have urged the Legislature to adopt a responsible, structurally sound budget. Based on today's action, objective analysts on Wall Street agree.

"This January, I presented a fiscally responsible, balanced budget for Fiscal Year 2017 that took these challenges into consideration and outlined a realistic proposal that did not include any across-the-board cuts beyond those already in place and used no money from the Rainy Day Fund. Over the past three years, we have cut more than 20 percent from many state agency budgets. Continuing to make deep cuts to critical programs and services is not sustainable, and it has the potential to cause additional downgrades in the future.

"If we don't take proactive steps to develop a stable path forward that does not rely on one-time monies and even deeper cuts to cover long-term and recurring needs, the economic and budget challenges facing our state will only get worse. We have worked too hard and come too far to allow that to happen, which is why I continue to push for a budget that takes into account the systemic changes in our state's economy and will put us on the path to a brighter financial future."

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