Our views, $61.5 million

State government should treat this windfall carefully

NOT all the money included in the president's second tax cut willgo to taxpayers. Indeed, $20 billion is earmarked for the taxcollectors as an aid package for state governments.

The state aid was included at the insistence of some Democrats,who still managed to vote against the tax cut in the end.

States will be able to use half that money to pay their share ofthe bills from Medicaid, but they will be given great discretion onspending the other half.

Therein lies a dilemma for West Virginia state government. Afterputting aside money for Medicaid, the state will have $61.5 millionto spend pretty much as it wishes.

Gov. Bob Wise is mulling over the options.

House Speaker Bob Kiss suggested the money be socked away in thestate's rainy day fund.

"We don't know what we're going to face," Kiss said. "I think wemight be better served if we set that money aside."

By changing its tax code, the federal government has influencedstate tax collections, Tax Secretary Brian Kastick has pointed out.He estimated the changes will cost West Virginia government $36million over the next two years.

Relief for the states is warranted, but it's important to rememberthat this is a one-time deal.

Moreover, given what Kastick says, West Virginia will not bebenefiting from any $61.5 million windfall in the new tax cut law.The net effect of the law could leave West Virginia with asignificantly smaller sum.

The prudent course that Kiss suggests is the correct one.