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ed will come to order first item

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00:24:18,652 --> 00:24:18,902
on the agenda is approval of

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00:24:20,686 --> 00:24:20,936
August11,2026 minutes

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00:24:26,386 --> 00:24:26,636
got to get Mcgeha is recognized

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00:24:27,152 --> 00:24:27,402
you thank you Mr Chair I move

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00:24:29,119 --> 00:24:29,369
to approve the august11 minutes.

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00:24:33,252 --> 00:24:33,502
like again moves to approve the

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the mes or discussion

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00:24:41,086 --> 00:24:41,336
not all those in favor signify

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00:24:43,086 --> 00:24:43,336
by saying I all this booze no

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the us appear toha it the ays do

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have it declare the minutes

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00:24:47,119 --> 00:24:47,369
approved.

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first item is committee report

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requests

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then we move on to monthly

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quarter quarterly reports

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received

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the next order of business

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00:25:06,619 --> 00:25:06,869
before the committee is the

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regular monthly quarterly

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reports members will find in

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their packets the reports from

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each agency

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first one is Mr Peter

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Shirley

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Thank you Mr President. good

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afternoon everyone.

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I am Pete Shirley, deputy

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revenue secretary and I'm going

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to go ahead and go through our

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00:25:34,852 --> 00:25:35,102
revenues through the first two

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00:25:35,452 --> 00:25:35,702
months of FY2027.

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so diving right into things

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00:25:41,119 --> 00:25:41,369
august for the general

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00:25:44,652 --> 00:25:44,902
revenue fun we were34.8 million

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00:25:48,586 --> 00:25:48,836
or 8.4% above estimate and we

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00:25:52,886 --> 00:25:53,136
were52.5 million or13.2% over

39
00:25:54,886 --> 00:25:55,136
august of last year. So

40
00:25:56,919 --> 00:25:57,169
regardless of which way you're

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00:25:58,419 --> 00:25:58,669
looking at it, whether you're

42
00:25:59,019 --> 00:25:59,269
looking at it relative to

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00:26:00,919 --> 00:26:01,169
estimate or you're looking at

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00:26:02,652 --> 00:26:02,902
actual year over year growth

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00:26:04,886 --> 00:26:05,136
both really healthy revenue

46
00:26:05,519 --> 00:26:05,769
figures for the state

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00:26:10,419 --> 00:26:10,669
looking there at the various

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00:26:11,419 --> 00:26:11,669
components of general revenue

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00:26:13,152 --> 00:26:13,402
you can see that the largest

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00:26:15,119 --> 00:26:15,369
driver of that both again

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00:26:16,886 --> 00:26:17,136
whether you're whether you're

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00:26:18,619 --> 00:26:18,869
looking relative to estimate or

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00:26:20,419 --> 00:26:20,669
year over year growth is

54
00:26:22,386 --> 00:26:22,636
personal income tax so personal

55
00:26:24,386 --> 00:26:24,636
income tax was15.3 million

56
00:26:26,686 --> 00:26:26,936
dollars over estimate or26.5

57
00:26:28,919 --> 00:26:29,169
million over last year and you

58
00:26:30,686 --> 00:26:30,936
can see there that especially

59
00:26:31,319 --> 00:26:31,569
with that year over year growth

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that's a really big percentage

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00:26:34,952 --> 00:26:35,202
and I think a natural question

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is why is that is that that

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people are making that

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00:26:39,086 --> 00:26:39,336
much more money what's you know

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00:26:42,419 --> 00:26:42,669
what's going on there as I've

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mentioned a couple of times

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before I think that looking at

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00:26:45,386 --> 00:26:45,636
withholding earth is a really

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good way to get a measure of

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00:26:48,686 --> 00:26:48,936
this that's the withholding that

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00:26:50,419 --> 00:26:50,669
comes out of people's paychecks

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you know for for us that work

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here at the state it's every two

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weeks whether it's you know two

75
00:26:56,419 --> 00:26:56,669
weeks twice a month, monthly

76
00:26:58,619 --> 00:26:58,869
whatever the case may be

77
00:27:02,386 --> 00:27:02,636
withholding is up2.4% over the

78
00:27:04,652 --> 00:27:04,902
past 12 months. so it is up

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that's that's growth that's

80
00:27:06,019 --> 00:27:06,269
below the rate of inflation

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which

82
00:27:10,386 --> 00:27:10,636
is3.4% but withholding over the

83
00:27:11,086 --> 00:27:11,336
past year

84
00:27:13,119 --> 00:27:13,369
has grown but not at that rate

85
00:27:15,119 --> 00:27:15,369
so that doesn't explain all of

86
00:27:16,886 --> 00:27:17,136
this growth that we've seen.

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00:27:18,619 --> 00:27:18,869
there are two other things that

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I think are important there one

89
00:27:21,152 --> 00:27:21,402
is that we've paid out

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significantly less in refunds in

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just the month of August alone

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00:27:28,386 --> 00:27:28,636
we paid out about7.5 million

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dollars less in refunds than we

94
00:27:32,419 --> 00:27:32,669
did in August of last year so

95
00:27:34,419 --> 00:27:34,669
that's that's a good chunk of

96
00:27:36,419 --> 00:27:36,669
that growth and part of the

97
00:27:40,419 --> 00:27:40,669
reason for that is the MB1, the

98
00:27:41,119 --> 00:27:41,369
car tax rebate I think is as

99
00:27:41,786 --> 00:27:42,036
it's more

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commonly known as for all of

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2025 we refunded a little

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00:27:51,119 --> 00:27:51,369
over125 million to taxpayers

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00:27:53,119 --> 00:27:53,369
so that's through all of2025

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through

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00:27:57,152 --> 00:27:57,402
the most recent data that I had

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for2026. it was 96.5 million so

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it was almost30 million dollars

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less. there's still some more

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that will come in particularly

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for people that file an

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extension but

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we are on track to pay out

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00:28:13,119 --> 00:28:13,369
less this year than we did last

114
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year and that's not just

115
00:28:15,286 --> 00:28:15,536
per

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per claim we've had about50,000

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fewer claims for the credit

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relative to last year so I think

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it's the combination of those

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things withholding is up yes but

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we also have less that's being

122
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paid out in refunds and a good

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00:28:32,386 --> 00:28:32,636
chunk of that is is because of

124
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the the car tax rebate so

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00:28:36,619 --> 00:28:36,869
that's personal income tax sales

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00:28:39,119 --> 00:28:39,369
tax4 million overestimate7.7

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00:28:42,386 --> 00:28:42,636
million over August of last

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year. the thing that I really

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like to see there on sales tax.

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I just mentioned it for the PT

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is that

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that growth rate4.3% is above

133
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the rate of inflation so it's

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00:28:52,886 --> 00:28:53,136
good to see sales tax growth

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00:28:54,652 --> 00:28:54,902
above the rate of inflation that

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00:28:56,652 --> 00:28:56,902
means that you know real

137
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spending has has increased in

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severance a bounce back month

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for severance we'll look at the

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year to date for severance here

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on the next slide but good to

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00:29:06,619 --> 00:29:06,869
see a bounce back month on

143
00:29:10,386 --> 00:29:10,636
severance um10.3 million above

144
00:29:12,386 --> 00:29:12,636
estimate and16.3 million

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00:29:15,386 --> 00:29:15,636
above the prior august and those

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00:29:16,052 --> 00:29:16,302
three combin

147
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ed for29.6 of that34.8 over

148
00:29:22,386 --> 00:29:22,636
overestimate and everything else

149
00:29:24,686 --> 00:29:24,936
was the was the remaining5.2 so

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00:29:26,686 --> 00:29:26,936
really those those three items

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00:29:28,886 --> 00:29:29,136
PT sales and severance were the

152
00:29:31,152 --> 00:29:31,402
were the drivers of our august

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revenues looking year to date

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00:29:37,152 --> 00:29:37,402
very similar story um46.1

155
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million over for the first two

156
00:29:42,852 --> 00:29:43,102
months overestimate that's5.8%

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00:29:46,852 --> 00:29:47,102
or53.2 million 6.8% over

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00:29:50,652 --> 00:29:50,902
for the year as as with august

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00:29:51,252 --> 00:29:51,502
and again there's only two

160
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months in this fiscal year to

161
00:29:54,952 --> 00:29:55,202
date data so you would expect

162
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that you know

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00:29:58,419 --> 00:29:58,669
august is going to be very

164
00:29:59,086 --> 00:29:59,336
important there PT was the

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number one driver but again

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00:30:03,119 --> 00:30:03,369
the same caveats that I just

167
00:30:04,619 --> 00:30:04,869
mentioned that withholding

168
00:30:05,352 --> 00:30:05,602
growth over the past 12 months

169
00:30:08,419 --> 00:30:08,669
has been slower than the rate

170
00:30:10,419 --> 00:30:10,669
of inflation and that some chunk

171
00:30:12,852 --> 00:30:13,102
of this is applied to refunds

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both of those caveats still

173
00:30:18,452 --> 00:30:18,702
apply sales again same thing15

174
00:30:19,152 --> 00:30:19,402
million relative estimate for

175
00:30:22,919 --> 00:30:23,169
the year21.4 million over the

176
00:30:24,652 --> 00:30:24,902
prior fiscal year to date that

177
00:30:25,319 --> 00:30:25,569
that growth rate is actually

178
00:30:25,986 --> 00:30:26,236
even higher at 6

179
00:30:28,386 --> 00:30:28,636
8 % so that that's an

180
00:30:30,652 --> 00:30:30,902
encouraging sign for

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00:30:32,886 --> 00:30:33,136
additional consumption and

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severance the one thing to note

183
00:30:35,352 --> 00:30:35,602
there is that we had a

184
00:30:37,152 --> 00:30:37,402
particularly bad July followed

185
00:30:40,419 --> 00:30:40,669
by a pretty good august and so

186
00:30:43,086 --> 00:30:43,336
we are under for the estimate

187
00:30:45,119 --> 00:30:45,369
for the year by about a little

188
00:30:47,119 --> 00:30:47,369
over2 million dollars but we

189
00:30:48,619 --> 00:30:48,869
have experienced growth from

190
00:30:52,386 --> 00:30:52,636
FY2026 to FY2027 year to date

191
00:30:54,619 --> 00:30:54,869
and so you know essentially what

192
00:30:55,386 --> 00:30:55,636
that means is that the estimate

193
00:30:56,052 --> 00:30:56,302
was anticipating

194
00:30:58,386 --> 00:30:58,636
growth but it was anticipating a

195
00:31:00,419 --> 00:31:00,669
little bit more growth than than

196
00:31:02,386 --> 00:31:02,636
what we actually saw and I think

197
00:31:04,652 --> 00:31:04,902
that some relatively no low

198
00:31:06,452 --> 00:31:06,702
natural gas prices again

199
00:31:07,052 --> 00:31:07,302
something we'll we'll dive into

200
00:31:08,386 --> 00:31:08,636
a little bit here more in a

201
00:31:09,219 --> 00:31:09,469
second are something that I

202
00:31:09,786 --> 00:31:10,036
think has a

203
00:31:13,386 --> 00:31:13,636
has driven that other than that

204
00:31:14,919 --> 00:31:15,169
just looking down at the the

205
00:31:16,686 --> 00:31:16,936
other items the biggest one

206
00:31:17,286 --> 00:31:17,536
there that stands out is

207
00:31:20,419 --> 00:31:20,669
interest income which is3.7

208
00:31:22,386 --> 00:31:22,636
million above relative to the

209
00:31:24,652 --> 00:31:24,902
estimate for the year and that's

210
00:31:26,419 --> 00:31:26,669
again it it's good that that

211
00:31:28,386 --> 00:31:28,636
the state's investments continue

212
00:31:30,419 --> 00:31:30,669
to bring us a return above what

213
00:31:32,652 --> 00:31:32,902
we are anticipating short

214
00:31:33,186 --> 00:31:33,436
term interest rates remain

215
00:31:36,386 --> 00:31:36,636
remain elevated but we have seen

216
00:31:37,419 --> 00:31:37,669
a little bit of softening over

217
00:31:40,519 --> 00:31:40,769
the past year or so in the

218
00:31:41,086 --> 00:31:41,336
balances that are being invested

219
00:31:41,752 --> 00:31:42,002
which

220
00:31:43,452 --> 00:31:43,702
means that agencies that have

221
00:31:44,886 --> 00:31:45,136
cash on hand that is being

222
00:31:46,652 --> 00:31:46,902
invested particularly with the

223
00:31:48,919 --> 00:31:49,169
BTti that cash is is being

224
00:31:51,252 --> 00:31:51,502
spent down for a variety of

225
00:31:51,819 --> 00:31:52,069
purposes

226
00:31:56,419 --> 00:31:56,669
looking at our general

227
00:31:57,152 --> 00:31:57,402
revenue fund collection trends

228
00:31:58,852 --> 00:31:59,102
one thing that I think is

229
00:32:01,152 --> 00:32:01,402
important to note if if you

230
00:32:02,886 --> 00:32:03,136
all you all have the slides so

231
00:32:04,619 --> 00:32:04,869
you can sort of look at it with

232
00:32:06,419 --> 00:32:06,669
me if you look at that red line

233
00:32:07,152 --> 00:32:07,402
which is the personal income tax

234
00:32:08,619 --> 00:32:08,869
so these are the major

235
00:32:09,086 --> 00:32:09,336
components of the general

236
00:32:11,119 --> 00:32:11,369
revenue fund if you look at that

237
00:32:12,886 --> 00:32:13,136
red line you can sort of see two

238
00:32:14,619 --> 00:32:14,869
points where it sort of inflexs

239
00:32:16,886 --> 00:32:17,136
upwards. One is in sort of

240
00:32:19,152 --> 00:32:19,402
that2022 to early2023 period so

241
00:32:21,152 --> 00:32:21,402
that was right before the

242
00:32:22,519 --> 00:32:22,769
initial21.24 personal income

243
00:32:25,152 --> 00:32:25,402
tax rate reductions occurred so

244
00:32:26,852 --> 00:32:27,102
you can sort of all of that was

245
00:32:28,619 --> 00:32:28,869
under the same rate environment

246
00:32:29,319 --> 00:32:29,569
so it's sort of easy to see

247
00:32:31,119 --> 00:32:31,369
what's going on there and you

248
00:32:32,886 --> 00:32:33,136
can see that that tends to trend

249
00:32:34,386 --> 00:32:34,636
up right about the same time

250
00:32:35,119 --> 00:32:35,369
that the severance tax starts to

251
00:32:36,886 --> 00:32:37,136
trend upwards and you can see a

252
00:32:38,386 --> 00:32:38,636
little bit of that again in the

253
00:32:40,886 --> 00:32:41,136
most recent data where PT starts

254
00:32:42,886 --> 00:32:43,136
to inflect back up again at the

255
00:32:44,652 --> 00:32:44,902
same time that severance starts

256
00:32:46,619 --> 00:32:46,869
to inflect back up. I'm not

257
00:32:47,352 --> 00:32:47,602
trying to make a causal argument

258
00:32:49,119 --> 00:32:49,369
here perse but one of the things

259
00:32:52,552 --> 00:32:52,802
that I want to emphasize that

260
00:32:53,219 --> 00:32:53,469
I think is important and I don't

261
00:32:53,886 --> 00:32:54,136
think

262
00:32:55,152 --> 00:32:55,402
it's talked about as much as it

263
00:32:56,386 --> 00:32:56,636
should is that

264
00:32:58,619 --> 00:32:58,869
the energy and the severance

265
00:33:00,652 --> 00:33:00,902
industry also matters for our

266
00:33:02,652 --> 00:33:02,902
personal income tax collections

267
00:33:04,852 --> 00:33:05,102
and the reason for that is that

268
00:33:06,652 --> 00:33:06,902
when gas prices are higher

269
00:33:08,419 --> 00:33:08,669
when there's larger production

270
00:33:10,419 --> 00:33:10,669
and that you know that gas is

271
00:33:11,052 --> 00:33:11,302
extracted from the ground

272
00:33:13,219 --> 00:33:13,469
those companies pay royalties to

273
00:33:14,652 --> 00:33:14,902
the royalty owners the people

274
00:33:16,386 --> 00:33:16,636
who own the miner rights and

275
00:33:17,386 --> 00:33:17,636
when those people earn that

276
00:33:18,919 --> 00:33:19,169
income from those royalties they

277
00:33:20,652 --> 00:33:20,902
owe personal income taxes on it.

278
00:33:22,886 --> 00:33:23,136
so when you have a period of

279
00:33:24,952 --> 00:33:25,202
good gas production or we we've

280
00:33:26,386 --> 00:33:26,636
increased gas production every

281
00:33:27,119 --> 00:33:27,369
year for the past15 years so

282
00:33:29,119 --> 00:33:29,369
it's sort of been a good gas

283
00:33:30,719 --> 00:33:30,969
production environment for the

284
00:33:32,386 --> 00:33:32,636
past decade and a half but also

285
00:33:33,019 --> 00:33:33,269
when you've had

286
00:33:34,786 --> 00:33:35,036
periods of higher prices

287
00:33:37,119 --> 00:33:37,369
that shows up both in the

288
00:33:38,919 --> 00:33:39,169
severance tax data but then that

289
00:33:40,886 --> 00:33:41,136
also has an effect on personal

290
00:33:44,386 --> 00:33:44,636
income tax data as people pay

291
00:33:45,352 --> 00:33:45,602
income taxes on those royalties

292
00:33:46,919 --> 00:33:47,169
so just something that I want to

293
00:33:48,886 --> 00:33:49,136
point out also to an extent we

294
00:33:51,186 --> 00:33:51,436
see this with real realize

295
00:33:52,852 --> 00:33:53,102
capital gains so when we have

296
00:33:54,652 --> 00:33:54,902
particularly good times in the

297
00:33:57,119 --> 00:33:57,369
market you know this matters

298
00:33:58,652 --> 00:33:58,902
whether or not people are

299
00:34:00,419 --> 00:34:00,669
realizing those gains or not

300
00:34:01,019 --> 00:34:01,269
because they only pay income

301
00:34:02,519 --> 00:34:02,769
taxes once they actually realize

302
00:34:03,186 --> 00:34:03,436
those capital gains

303
00:34:08,886 --> 00:34:09,136
but when we see periods of of

304
00:34:10,619 --> 00:34:10,869
very good investment returns and

305
00:34:12,586 --> 00:34:12,836
people tend to realize those

306
00:34:13,219 --> 00:34:13,469
gains that will also have an

307
00:34:14,686 --> 00:34:14,936
effect on our personal income

308
00:34:16,652 --> 00:34:16,902
tax collection so just two other

309
00:34:18,386 --> 00:34:18,636
things to keep in mind that I

310
00:34:20,652 --> 00:34:20,902
think are partially to explain

311
00:34:22,886 --> 00:34:23,136
why our Pt collections are up so

312
00:34:24,886 --> 00:34:25,136
much especially so far early in

313
00:34:26,686 --> 00:34:26,936
this fiscal year sort of despite

314
00:34:28,419 --> 00:34:28,669
the fact that withholding has

315
00:34:30,419 --> 00:34:30,669
grown but grown at a much slower

316
00:34:32,419 --> 00:34:32,669
rate than you see that that

317
00:34:33,019 --> 00:34:33,269
overall growth

318
00:34:36,386 --> 00:34:36,636
speaking of severance tax

319
00:34:38,419 --> 00:34:38,669
collections the next slide you

320
00:34:39,119 --> 00:34:39,369
can see a couple of recent dips

321
00:34:39,786 --> 00:34:40,036
there

322
00:34:43,086 --> 00:34:43,336
that's driven again primarily by

323
00:34:44,386 --> 00:34:44,636
natural gas. naturaltural gas

324
00:34:46,652 --> 00:34:46,902
prices are down July of last

325
00:34:48,886 --> 00:34:49,136
year they were2 dollars 64 cents

326
00:34:49,552 --> 00:34:49,802
per MCf

327
00:34:52,386 --> 00:34:52,636
July2026 they were closer to2

328
00:34:53,086 --> 00:34:53,336
dollars about gas prices

329
00:34:56,419 --> 00:34:56,669
about20% down year over year at

330
00:34:58,619 --> 00:34:58,869
least looking at the the July

331
00:35:00,652 --> 00:35:00,902
figures so the trend that we saw

332
00:35:01,352 --> 00:35:01,602
downward here at the beginning

333
00:35:03,086 --> 00:35:03,336
of the this fiscal year is is

334
00:35:06,386 --> 00:35:06,636
mostly driven by natural gas you

335
00:35:07,219 --> 00:35:07,469
can see that the coal there has

336
00:35:07,886 --> 00:35:08,136
remained

337
00:35:10,719 --> 00:35:10,969
relatively stable over about the

338
00:35:11,419 --> 00:35:11,669
past year or so.

339
00:35:14,652 --> 00:35:14,902
switching to the state

340
00:35:18,386 --> 00:35:18,636
roadund state road fund is27.2

341
00:35:22,386 --> 00:35:22,636
million over for August or 9.5%

342
00:35:23,319 --> 00:35:23,569
compared year over year

343
00:35:28,619 --> 00:35:28,869
that's37.1 million or13.4% on

344
00:35:29,219 --> 00:35:29,469
that37.1

345
00:35:32,886 --> 00:35:33,136
the the largest component of

346
00:35:34,619 --> 00:35:34,869
that that I think is really

347
00:35:35,352 --> 00:35:35,602
important to point out is the

348
00:35:37,152 --> 00:35:37,402
back of the budget funding for

349
00:35:40,419 --> 00:35:40,669
roads so in August there was you

350
00:35:41,152 --> 00:35:41,402
can see there that august

351
00:35:42,619 --> 00:35:42,869
official estimate for

352
00:35:44,652 --> 00:35:44,902
miscellaneous was125 million

353
00:35:46,886 --> 00:35:47,136
dollars that is that125 million

354
00:35:48,719 --> 00:35:48,969
dollars appropriation from the

355
00:35:50,652 --> 00:35:50,902
back of the budget lastst year

356
00:35:52,386 --> 00:35:52,636
it was100 million dollars so

357
00:35:54,386 --> 00:35:54,636
that difference of25 million

358
00:35:56,886 --> 00:35:57,136
dollars is in that39.6 million

359
00:35:59,452 --> 00:35:59,702
and so a good chunk of that

360
00:35:59,986 --> 00:36:00,236
year over year difference

361
00:36:04,386 --> 00:36:04,636
is additional transfers of money

362
00:36:05,319 --> 00:36:05,569
from the general revenue fund to

363
00:36:08,652 --> 00:36:08,902
the to the state roadund looking

364
00:36:09,352 --> 00:36:09,602
at the other components

365
00:36:10,886 --> 00:36:11,136
registration fees were almost

366
00:36:12,652 --> 00:36:12,902
exactly on estimate for the

367
00:36:14,652 --> 00:36:14,902
month. Saes tax was slightly

368
00:36:17,119 --> 00:36:17,369
down motor fuel tax slightly up

369
00:36:18,652 --> 00:36:18,902
again that's something that I've

370
00:36:21,119 --> 00:36:21,369
been cautious about if if you

371
00:36:22,886 --> 00:36:23,136
recall over these past couple of

372
00:36:24,886 --> 00:36:25,136
months especially with slightly

373
00:36:26,886 --> 00:36:27,136
higher gas prices but that has

374
00:36:28,619 --> 00:36:28,869
been these past two months have

375
00:36:29,386 --> 00:36:29,636
been have been relatively good

376
00:36:30,052 --> 00:36:30,302
for the motor fuel tax

377
00:36:33,119 --> 00:36:33,369
and federaler reimbursement has

378
00:36:36,386 --> 00:36:36,636
been above estimate for the

379
00:36:37,186 --> 00:36:37,436
month again something that we've

380
00:36:38,652 --> 00:36:38,902
been keeping an eye on

381
00:36:40,419 --> 00:36:40,669
becauseeder reimbursements came

382
00:36:42,652 --> 00:36:42,902
in well below estimate for

383
00:36:44,919 --> 00:36:45,169
FY2026 so that is as they

384
00:36:45,486 --> 00:36:45,736
continue to work through that

385
00:36:46,886 --> 00:36:47,136
backlog from some of the

386
00:36:47,386 --> 00:36:47,636
flooding that they had hadn't

387
00:36:48,919 --> 00:36:49,169
been dealing with with those

388
00:36:50,419 --> 00:36:50,669
issues so it's good to see them

389
00:36:51,052 --> 00:36:51,302
getting back

390
00:36:53,552 --> 00:36:53,802
getting back on track

391
00:36:55,219 --> 00:36:55,469
year to date

392
00:36:58,619 --> 00:36:58,869
relatively similar story not a

393
00:37:00,619 --> 00:37:00,869
whole lot to add there47.8

394
00:37:02,386 --> 00:37:02,636
million over for the month

395
00:37:03,352 --> 00:37:03,602
or47.8 million over for the

396
00:37:04,886 --> 00:37:05,136
fiscal year to date again that's

397
00:37:08,919 --> 00:37:09,169
just July and August or10.9%52

398
00:37:09,519 --> 00:37:09,769
million over

399
00:37:11,152 --> 00:37:11,402
for the

400
00:37:14,886 --> 00:37:15,136
year over year11.9% again I

401
00:37:15,486 --> 00:37:15,736
think the biggest thing to point

402
00:37:16,152 --> 00:37:16,402
out there is that

403
00:37:18,919 --> 00:37:19,169
25 million of that is the

404
00:37:22,419 --> 00:37:22,669
additional appropriation from

405
00:37:24,652 --> 00:37:24,902
the general revenue fund but

406
00:37:26,519 --> 00:37:26,769
registration fees and sales

407
00:37:28,886 --> 00:37:29,136
continue to outperform the

408
00:37:30,686 --> 00:37:30,936
estimate motor fuel does as well

409
00:37:31,419 --> 00:37:31,669
which is good and

410
00:37:34,919 --> 00:37:35,169
so does theeder reimbursement

411
00:37:36,886 --> 00:37:37,136
again for the same reasons the

412
00:37:38,519 --> 00:37:38,769
fiscal year to date story there

413
00:37:39,186 --> 00:37:39,436
in the

414
00:37:41,086 --> 00:37:41,336
just the the august story I

415
00:37:41,652 --> 00:37:41,902
think or

416
00:37:44,886 --> 00:37:45,136
relatively similar and that is

417
00:37:46,686 --> 00:37:46,936
the state road fund and Mr

418
00:37:47,319 --> 00:37:47,569
President I'm happy to take

419
00:37:48,819 --> 00:37:49,069
any questions that you all have

420
00:37:52,652 --> 00:37:52,902
thank you Mr Shirley is a

421
00:37:53,152 --> 00:37:53,402
questions our delegate howe

422
00:37:58,419 --> 00:37:58,669
thank you Mr Chairman thanks for

423
00:37:59,086 --> 00:37:59,336
being here, Pete. a couple of

424
00:38:00,852 --> 00:38:01,102
questions when we take the

425
00:38:02,386 --> 00:38:02,636
severance tax out which I

426
00:38:03,086 --> 00:38:03,336
believe is how we calculate if

427
00:38:04,819 --> 00:38:05,069
we're going to reduce the income

428
00:38:05,486 --> 00:38:05,736
tax

429
00:38:07,619 --> 00:38:07,869
how are we comparing to

430
00:38:08,186 --> 00:38:08,436
inflation

431
00:38:09,086 --> 00:38:09,336
how's that looking are we

432
00:38:13,152 --> 00:38:13,402
outperforming inflation we blow

433
00:38:14,886 --> 00:38:15,136
inflation where are we at on

434
00:38:16,686 --> 00:38:16,936
that? So I have not done that

435
00:38:18,686 --> 00:38:18,936
through these two months so far

436
00:38:19,386 --> 00:38:19,636
this year but I can tell you

437
00:38:20,686 --> 00:38:20,936
sort of when we did the

438
00:38:22,652 --> 00:38:22,902
calculation at the end of

439
00:38:25,219 --> 00:38:25,469
uhY2026 we were below the rate

440
00:38:25,886 --> 00:38:26,136
of inflation

441
00:38:29,119 --> 00:38:29,369
for FY2026 when you remove

442
00:38:31,186 --> 00:38:31,436
severance tax so we had revenue

443
00:38:33,186 --> 00:38:33,436
growth without severance tax but

444
00:38:34,919 --> 00:38:35,169
it was revenue growth below the

445
00:38:36,886 --> 00:38:37,136
rate of inflation so we got

446
00:38:38,686 --> 00:38:38,936
farther away from the trigger

447
00:38:39,386 --> 00:38:39,636
than we were

448
00:38:42,419 --> 00:38:42,669
prior year. I believe we missed

449
00:38:45,186 --> 00:38:45,436
the trigger by306 million

450
00:38:45,752 --> 00:38:46,002
dollars

451
00:38:50,652 --> 00:38:50,902
last July and we missed it by

452
00:38:51,286 --> 00:38:51,536
391 this July.

453
00:38:54,486 --> 00:38:54,736
is that a trend you expect to

454
00:38:55,152 --> 00:38:55,402
continue?

455
00:38:58,752 --> 00:38:59,002
For the most part yes

456
00:39:02,919 --> 00:39:03,169
also noticed that back about

457
00:39:04,686 --> 00:39:04,936
the beginning of25 corporate

458
00:39:05,352 --> 00:39:05,602
nets starts to drop

459
00:39:08,686 --> 00:39:08,936
or our corporations becoming

460
00:39:10,652 --> 00:39:10,902
less profitable or we losing

461
00:39:11,252 --> 00:39:11,502
them are we not replacing them?

462
00:39:12,552 --> 00:39:12,802
what's what's the cause of that?

463
00:39:16,386 --> 00:39:16,636
I think the largest the largest

464
00:39:17,119 --> 00:39:17,369
thing that you see there so some

465
00:39:18,686 --> 00:39:18,936
of this comes in before the

466
00:39:20,452 --> 00:39:20,702
effects of the big beautifulau

467
00:39:22,919 --> 00:39:23,169
bill but part of that the lion's

468
00:39:24,652 --> 00:39:24,902
share of that I think I think we

469
00:39:26,886 --> 00:39:27,136
had estimated about100 million

470
00:39:28,652 --> 00:39:28,902
on the corporate side was going

471
00:39:29,286 --> 00:39:29,536
to be the effects of the big

472
00:39:30,719 --> 00:39:30,969
beautifulau bill and we've seen

473
00:39:32,686 --> 00:39:32,936
something slightly larger than

474
00:39:34,419 --> 00:39:34,669
that over the past period of

475
00:39:35,186 --> 00:39:35,436
time. so

476
00:39:38,919 --> 00:39:39,169
two things there one that's the

477
00:39:40,819 --> 00:39:41,069
largest driver but I also think

478
00:39:41,486 --> 00:39:41,736
that

479
00:39:43,452 --> 00:39:43,702
similar to what I just said on

480
00:39:46,686 --> 00:39:46,936
the PT being tied to the energy

481
00:39:47,386 --> 00:39:47,636
industry. a lot of our most

482
00:39:50,419 --> 00:39:50,669
profitable companies that have

483
00:39:52,386 --> 00:39:52,636
sales in west Virginia also our

484
00:39:55,119 --> 00:39:55,369
energy companies and so when

485
00:39:56,419 --> 00:39:56,669
when energy prices are

486
00:39:56,886 --> 00:39:57,136
relatively high they have higher

487
00:39:58,886 --> 00:39:59,136
profits we see that come in and

488
00:40:00,419 --> 00:40:00,669
then as energy prices start to

489
00:40:01,286 --> 00:40:01,536
come down that sort of comes

490
00:40:01,952 --> 00:40:02,202
back out a little bit as well

491
00:40:04,919 --> 00:40:05,169
that's not really showing in the

492
00:40:05,652 --> 00:40:05,902
graph here as I see it

493
00:40:08,852 --> 00:40:09,102
you don't think so

494
00:40:11,252 --> 00:40:11,502
because it because I see the

495
00:40:15,219 --> 00:40:15,469
personal income tax is on the

496
00:40:18,386 --> 00:40:18,636
rise sales tax is on the rise

497
00:40:19,086 --> 00:40:19,336
but this is going down here. I'm

498
00:40:19,752 --> 00:40:20,002
looking at this chart

499
00:40:22,919 --> 00:40:23,169
I'm suck I'm looking at about

500
00:40:26,419 --> 00:40:26,669
July of2025 it starts to come

501
00:40:28,386 --> 00:40:28,636
down for the green line which is

502
00:40:29,086 --> 00:40:29,336
the corporate net right that's

503
00:40:30,686 --> 00:40:30,936
what I was looking at yeah and

504
00:40:32,886 --> 00:40:33,136
so that again I think the lion's

505
00:40:34,686 --> 00:40:34,936
share of that is the effects of

506
00:40:35,386 --> 00:40:35,636
conformity from the big

507
00:40:36,419 --> 00:40:36,669
beautifulau bill because if you

508
00:40:38,952 --> 00:40:39,202
recall a lot of those provisions

509
00:40:40,652 --> 00:40:40,902
were actually made retroactive

510
00:40:42,919 --> 00:40:43,169
to the beginning of2025. So when

511
00:40:44,686 --> 00:40:44,936
we canf when we conformed even

512
00:40:46,686 --> 00:40:46,936
though we conformed early in

513
00:40:48,686 --> 00:40:48,936
well that have been January of

514
00:40:49,319 --> 00:40:49,569
this year. a lot of those

515
00:40:49,852 --> 00:40:50,102
provisions were actually made

516
00:40:50,519 --> 00:40:50,769
retroactive to

517
00:40:53,119 --> 00:40:53,369
the beginning of2025 and a lot

518
00:40:54,619 --> 00:40:54,869
of those corporations were

519
00:40:56,619 --> 00:40:56,869
anticipating that we would

520
00:40:58,619 --> 00:40:58,869
ultimately conform because I

521
00:41:00,419 --> 00:41:00,669
think the public posture from

522
00:41:01,019 --> 00:41:01,269
folks in the administration was

523
00:41:02,652 --> 00:41:02,902
that that was the intent and so

524
00:41:04,686 --> 00:41:04,936
they began to act as though we

525
00:41:05,286 --> 00:41:05,536
that we were going to conform

526
00:41:06,486 --> 00:41:06,736
even if we hadn't formally

527
00:41:07,052 --> 00:41:07,302
passed the bill yet.

528
00:41:09,419 --> 00:41:09,669
and another question on

529
00:41:10,586 --> 00:41:10,836
severance tax where you know

530
00:41:14,386 --> 00:41:14,636
natural gas is now what's

531
00:41:16,652 --> 00:41:16,902
6070% of our severance or

532
00:41:19,186 --> 00:41:19,436
something along those lines.2/3

533
00:41:20,919 --> 00:41:21,169
to70% yeah that's right. But but

534
00:41:22,919 --> 00:41:23,169
looking at your chart here and

535
00:41:25,152 --> 00:41:25,402
like gas is much more volatile

536
00:41:28,652 --> 00:41:28,902
than cole or the others so

537
00:41:29,186 --> 00:41:29,436
what's that gonna to do for our

538
00:41:30,952 --> 00:41:31,202
projections going forward where

539
00:41:32,652 --> 00:41:32,902
we're gonna have be further off

540
00:41:34,886 --> 00:41:35,136
on our projections because gas

541
00:41:35,552 --> 00:41:35,802
is so volatable now a large

542
00:41:36,086 --> 00:41:36,336
chunk of our

543
00:41:39,152 --> 00:41:39,402
it it certainly makes our lives

544
00:41:41,152 --> 00:41:41,402
more difficult yes yes yes the

545
00:41:43,119 --> 00:41:43,369
the more volatile your severance

546
00:41:46,386 --> 00:41:46,636
industry is the more the more

547
00:41:46,986 --> 00:41:47,236
volatile any industry that you

548
00:41:48,419 --> 00:41:48,669
have in your projections is the

549
00:41:49,152 --> 00:41:49,402
harder it is to make good

550
00:41:51,152 --> 00:41:51,402
projections right? I mean we

551
00:41:52,419 --> 00:41:52,669
could we could talk about all

552
00:41:53,119 --> 00:41:53,369
sorts of geopolitical things

553
00:41:54,619 --> 00:41:54,869
that are going on that have

554
00:41:56,652 --> 00:41:56,902
wreaked havoc on any estimates

555
00:41:57,386 --> 00:41:57,636
that we could have put together

556
00:41:58,386 --> 00:41:58,636
for what was going to happen

557
00:41:59,286 --> 00:41:59,536
with the energy market and

558
00:42:04,919 --> 00:42:05,169
yeah so I think I think there

559
00:42:06,852 --> 00:42:07,102
it's sort of a philosophical

560
00:42:10,619 --> 00:42:10,869
question of my my personal

561
00:42:11,386 --> 00:42:11,636
preference and my personal

562
00:42:13,119 --> 00:42:13,369
recommendation is to sort of err

563
00:42:14,686 --> 00:42:14,936
on the side of where our

564
00:42:16,652 --> 00:42:16,902
historical trends have been

565
00:42:18,452 --> 00:42:18,702
maybe rely a little bit less on

566
00:42:19,152 --> 00:42:19,402
trying to project into the

567
00:42:20,919 --> 00:42:21,169
future and say ok what is sort

568
00:42:22,919 --> 00:42:23,169
of our what is our base that we

569
00:42:24,919 --> 00:42:25,169
can really rely on year over

570
00:42:27,186 --> 00:42:27,436
year and do you treat you know a

571
00:42:28,952 --> 00:42:29,202
good severance year essentially

572
00:42:31,019 --> 00:42:31,269
as a as a bo as a windfall

573
00:42:31,586 --> 00:42:31,836
rather than something you're

574
00:42:32,252 --> 00:42:32,502
trying to

575
00:42:34,386 --> 00:42:34,636
anticipate and you're trying to

576
00:42:35,152 --> 00:42:35,402
explicitly budget for

577
00:42:37,119 --> 00:42:37,369
do you do you expect to see more

578
00:42:39,119 --> 00:42:39,369
conservative estimates so when

579
00:42:40,652 --> 00:42:40,902
we do have good times where

580
00:42:41,319 --> 00:42:41,569
we'll tend to have surpluses

581
00:42:43,452 --> 00:42:43,702
because of that I don't I don't

582
00:42:44,119 --> 00:42:44,369
think

583
00:42:45,019 --> 00:42:45,269
I'm not sure

584
00:42:48,419 --> 00:42:48,669
because obviously this is the

585
00:42:49,452 --> 00:42:49,702
this would now be the third

586
00:42:53,119 --> 00:42:53,369
round of budget estimates that I

587
00:42:54,886 --> 00:42:55,136
would have been part of helping

588
00:42:56,852 --> 00:42:57,102
put together I think that's been

589
00:42:58,419 --> 00:42:58,669
the approach for at least all of

590
00:43:00,419 --> 00:43:00,669
the ones that I've been a part

591
00:43:02,886 --> 00:43:03,136
of is that you know maybe we

592
00:43:04,419 --> 00:43:04,669
thought that severance would be

593
00:43:06,386 --> 00:43:06,636
a little bit higher but do you

594
00:43:07,186 --> 00:43:07,436
want to take that risk? do you

595
00:43:07,852 --> 00:43:08,102
want to risk

596
00:43:10,886 --> 00:43:11,136
you know conflict in the Middle

597
00:43:12,652 --> 00:43:12,902
East that type of thing. what do

598
00:43:13,286 --> 00:43:13,536
you do you want to project that

599
00:43:13,952 --> 00:43:14,202
or would you rather say

600
00:43:16,386 --> 00:43:16,636
this is where we have been

601
00:43:18,386 --> 00:43:18,636
historically. this is something

602
00:43:20,419 --> 00:43:20,669
that you know I personally as

603
00:43:22,386 --> 00:43:22,636
the deputy revenue secretary who

604
00:43:23,152 --> 00:43:23,402
was the person who usually gets

605
00:43:23,819 --> 00:43:24,069
up and explains these estimates

606
00:43:24,486 --> 00:43:24,736
to you

607
00:43:26,386 --> 00:43:26,636
is that the number that I think

608
00:43:27,152 --> 00:43:27,402
I can get up here and stand here

609
00:43:27,819 --> 00:43:28,069
and look you in the eye and

610
00:43:28,386 --> 00:43:28,636
defend.

611
00:43:30,652 --> 00:43:30,902
and something maybe that's more

612
00:43:32,652 --> 00:43:32,902
rosy do I get a little more

613
00:43:34,619 --> 00:43:34,869
nervous if I'm saying you know I

614
00:43:35,352 --> 00:43:35,602
think we can get there or would

615
00:43:36,886 --> 00:43:37,136
I rather say I really think

616
00:43:38,686 --> 00:43:38,936
we'll have at least this and

617
00:43:39,252 --> 00:43:39,502
maybe we get some more and

618
00:43:40,686 --> 00:43:40,936
that's a surplus and that'd be

619
00:43:41,386 --> 00:43:41,636
great we'd love to see that but

620
00:43:43,252 --> 00:43:43,502
do we want to count on that

621
00:43:45,152 --> 00:43:45,402
and I have one final question

622
00:43:46,919 --> 00:43:47,169
back on to the road funding act

623
00:43:48,919 --> 00:43:49,169
with the downward trend in the

624
00:43:50,419 --> 00:43:50,669
federal reimbursement is that a

625
00:43:52,419 --> 00:43:52,669
timing issue is that the roads

626
00:43:53,052 --> 00:43:53,302
to prosperity completely running

627
00:43:53,719 --> 00:43:53,969
out what's

628
00:43:56,652 --> 00:43:56,902
so we are not involved as much

629
00:43:57,319 --> 00:43:57,569
of that so a lot of the

630
00:43:58,619 --> 00:43:58,869
information I'm going to give

631
00:44:00,619 --> 00:44:00,869
you is now sort of secondhand

632
00:44:02,652 --> 00:44:02,902
from from DOt so if you really

633
00:44:03,352 --> 00:44:03,602
want it from the source I'd

634
00:44:04,919 --> 00:44:05,169
recommend talking to them but

635
00:44:07,152 --> 00:44:07,402
from my understanding with a lot

636
00:44:08,886 --> 00:44:09,136
of the flooding that occurred

637
00:44:10,886 --> 00:44:11,136
last year. they essentially took

638
00:44:12,619 --> 00:44:12,869
people that were typically doing

639
00:44:13,352 --> 00:44:13,602
their normal federal

640
00:44:15,119 --> 00:44:15,369
reimbursement process and sort

641
00:44:16,619 --> 00:44:16,869
of shifted them to working more

642
00:44:18,652 --> 00:44:18,902
with FEMA on disaster response

643
00:44:20,686 --> 00:44:20,936
and trying to get money through

644
00:44:22,619 --> 00:44:22,869
disaster recovery efforts and

645
00:44:23,286 --> 00:44:23,536
then as they've sort of

646
00:44:25,152 --> 00:44:25,402
finished up that project they've

647
00:44:26,886 --> 00:44:27,136
moved back onto their normal

648
00:44:28,619 --> 00:44:28,869
federaler reimbursement and so

649
00:44:30,419 --> 00:44:30,669
you've seen the federaler

650
00:44:31,119 --> 00:44:31,369
reimbursement start to swing up

651
00:44:32,852 --> 00:44:33,102
over the past few months as they

652
00:44:33,586 --> 00:44:33,836
sort of have gotten through that

653
00:44:35,152 --> 00:44:35,402
backlog and they're back to sort

654
00:44:36,919 --> 00:44:37,169
of their more normal activities.

655
00:44:38,886 --> 00:44:39,136
So I think you did see a dip. it

656
00:44:40,686 --> 00:44:40,936
was that that was absolutely the

657
00:44:42,686 --> 00:44:42,936
the case. but what was relayed

658
00:44:44,386 --> 00:44:44,636
to me is that they anticipated

659
00:44:45,152 --> 00:44:45,402
that to be sort of transitory as

660
00:44:45,852 --> 00:44:46,102
they worked through that process

661
00:44:47,652 --> 00:44:47,902
thank you thank you Mr Chairman

662
00:44:50,752 --> 00:44:51,002
delicateri

663
00:44:52,752 --> 00:44:53,002
thank you Mr President

664
00:44:57,152 --> 00:44:57,402
the the trenton on the PT are

665
00:45:00,686 --> 00:45:00,936
are we still seeing some backlog

666
00:45:02,652 --> 00:45:02,902
on withholding from the from the

667
00:45:04,886 --> 00:45:05,136
corporations or or businesses

668
00:45:07,152 --> 00:45:07,402
that are still withholding at a

669
00:45:09,186 --> 00:45:09,436
higher rate and trying to play

670
00:45:09,886 --> 00:45:10,136
catch up

671
00:45:11,352 --> 00:45:11,602
on their withholding

672
00:45:14,886 --> 00:45:15,136
because did we see in you're

673
00:45:16,886 --> 00:45:17,136
trending I think I heard you

674
00:45:19,119 --> 00:45:19,369
mention that your refund on pRT

675
00:45:22,386 --> 00:45:22,636
was up a little bit still we

676
00:45:23,119 --> 00:45:23,369
still got a couple more months

677
00:45:26,419 --> 00:45:26,669
to go on extensions. I I think

678
00:45:28,552 --> 00:45:28,802
that there has been some of that

679
00:45:29,219 --> 00:45:29,469
yes. I think that

680
00:45:31,152 --> 00:45:31,402
when we initially put together

681
00:45:34,386 --> 00:45:34,636
the estimates for I can't

682
00:45:34,986 --> 00:45:35,236
remember what bill number it was

683
00:45:36,652 --> 00:45:36,902
now but it was the it was the5%

684
00:45:38,419 --> 00:45:38,669
across the board tax cut when we

685
00:45:39,152 --> 00:45:39,402
had put those estimates together

686
00:45:42,652 --> 00:45:42,902
we both had an effect for FY2026

687
00:45:44,886 --> 00:45:45,136
and in effect for FY2027 and the

688
00:45:46,886 --> 00:45:47,136
idea behind FY26 when it was

689
00:45:48,886 --> 00:45:49,136
originally conceived was that

690
00:45:50,419 --> 00:45:50,669
the bill would be passed very

691
00:45:51,186 --> 00:45:51,436
quickly almosts that it you know

692
00:45:52,886 --> 00:45:53,136
it perhaps could have even been

693
00:45:54,652 --> 00:45:54,902
done prospectively rather than

694
00:45:56,652 --> 00:45:56,902
retroactively and people could

695
00:45:57,286 --> 00:45:57,536
have had time to update their

696
00:45:58,686 --> 00:45:58,936
withholdings that obviously

697
00:45:59,219 --> 00:45:59,469
didn't happen it

698
00:46:01,152 --> 00:46:01,402
passed later in session and so

699
00:46:02,986 --> 00:46:03,236
yes, I think there were people

700
00:46:03,652 --> 00:46:03,902
for whom

701
00:46:05,486 --> 00:46:05,736
they didn't properly withhold

702
00:46:06,652 --> 00:46:06,902
for those first couple of months

703
00:46:08,652 --> 00:46:08,902
of the year and I think there

704
00:46:10,652 --> 00:46:10,902
will be employers for whom you

705
00:46:12,386 --> 00:46:12,636
know especially small mom and

706
00:46:13,119 --> 00:46:13,369
pop organizations they're

707
00:46:14,886 --> 00:46:15,136
probably not gonna go to their

708
00:46:16,852 --> 00:46:17,102
accountant and try to have their

709
00:46:18,386 --> 00:46:18,636
handful of employees update

710
00:46:18,986 --> 00:46:19,236
their withholdings they'll

711
00:46:20,886 --> 00:46:21,136
probably just wait until January

712
00:46:22,652 --> 00:46:22,902
1 of next year and do that so

713
00:46:24,919 --> 00:46:25,169
those those types of people will

714
00:46:26,886 --> 00:46:27,136
be withholding too much from now

715
00:46:29,352 --> 00:46:29,602
until December31 and what will

716
00:46:30,852 --> 00:46:31,102
happen is all of those people

717
00:46:31,519 --> 00:46:31,769
will then come in

718
00:46:34,686 --> 00:46:34,936
early next year they'll catch up

719
00:46:35,386 --> 00:46:35,636
when they do their refund and

720
00:46:36,852 --> 00:46:37,102
they'll say, oh I took out too

721
00:46:38,852 --> 00:46:39,102
much now I get a larger refund

722
00:46:40,652 --> 00:46:40,902
and then the other thing on the

723
00:46:42,386 --> 00:46:42,636
big beautiful bill I think there

724
00:46:44,619 --> 00:46:44,869
was a special consideration for

725
00:46:46,652 --> 00:46:46,902
depreciation and a continuation

726
00:46:49,119 --> 00:46:49,369
of section179 on bonus

727
00:46:52,619 --> 00:46:52,869
depreciation do you do are we

728
00:46:54,886 --> 00:46:55,136
able to see within the corporate

729
00:46:55,586 --> 00:46:55,836
returns

730
00:46:58,419 --> 00:46:58,669
those dollars as far as those

731
00:47:00,919 --> 00:47:01,169
the increases in that that is an

732
00:47:02,919 --> 00:47:03,169
excellent question. I don't know

733
00:47:04,652 --> 00:47:04,902
the answer to it but I will I

734
00:47:05,286 --> 00:47:05,536
will look into that and get back

735
00:47:05,952 --> 00:47:06,202
to you. I would

736
00:47:08,619 --> 00:47:08,869
I would imagine that there is

737
00:47:09,286 --> 00:47:09,536
somewhere where they

738
00:47:12,386 --> 00:47:12,636
specifically are claiming that I

739
00:47:13,119 --> 00:47:13,369
don't know exactly what the form

740
00:47:14,886 --> 00:47:15,136
where where that would show up

741
00:47:16,386 --> 00:47:16,636
on the form but I would imagine

742
00:47:17,086 --> 00:47:17,336
there's a place where they claim

743
00:47:18,919 --> 00:47:19,169
it and so we should be able to

744
00:47:20,686 --> 00:47:20,936
get some kind of aggregate

745
00:47:22,386 --> 00:47:22,636
that's been a big help to a lot

746
00:47:23,119 --> 00:47:23,369
of businesses that are heavy

747
00:47:23,786 --> 00:47:24,036
industry

748
00:47:26,852 --> 00:47:27,102
to be able to do to take that

749
00:47:27,452 --> 00:47:27,702
bonus depreciation in one year

750
00:47:32,752 --> 00:47:33,002
and the section179 and I assume

751
00:47:33,419 --> 00:47:33,669
that the the corporate

752
00:47:35,186 --> 00:47:35,436
returns that we're seeing are

753
00:47:36,986 --> 00:47:37,236
traditional type businesses with

754
00:47:37,652 --> 00:47:37,902
heavy equipment

755
00:47:41,219 --> 00:47:41,469
and a lot of iron like in in

756
00:47:42,652 --> 00:47:42,902
businesses that I'm familiar

757
00:47:44,652 --> 00:47:44,902
with and that was very helpful

758
00:47:47,152 --> 00:47:47,402
as far as reduction in in

759
00:47:49,186 --> 00:47:49,436
corporate tax owed to the state

760
00:47:51,152 --> 00:47:51,402
so yeah if you can get a trend

761
00:47:53,152 --> 00:47:53,402
on that I'd appreciate it's it's

762
00:47:54,686 --> 00:47:54,936
an excellent point. I have not

763
00:47:55,386 --> 00:47:55,636
looked into it but

764
00:47:57,086 --> 00:47:57,336
we we should and I will thank

765
00:47:57,719 --> 00:47:57,969
you thank you Mr President

766
00:48:02,519 --> 00:48:02,769
delegate hornbuckle

767
00:48:05,152 --> 00:48:05,402
thank you Mr President and

768
00:48:06,886 --> 00:48:07,136
thank you Mr Secretary for

769
00:48:09,152 --> 00:48:09,402
presenting today if you would

770
00:48:11,119 --> 00:48:11,369
remind me again what all is

771
00:48:12,486 --> 00:48:12,736
included in sales and use tax

772
00:48:22,652 --> 00:48:22,902
sales of goods and services that

773
00:48:24,552 --> 00:48:24,802
aren't subject to an exemption

774
00:48:25,219 --> 00:48:25,469
of which there are

775
00:48:28,619 --> 00:48:28,869
in code I think at this point

776
00:48:30,419 --> 00:48:30,669
maybe 80 different exemptions.

777
00:48:32,886 --> 00:48:33,136
most most things the big ones

778
00:48:34,386 --> 00:48:34,636
that aren't groceries aren't

779
00:48:36,419 --> 00:48:36,669
exempt prepared foods are

780
00:48:37,119 --> 00:48:37,369
included you know most things

781
00:48:39,152 --> 00:48:39,402
that you would go and buy in a

782
00:48:40,852 --> 00:48:41,102
store are subject to the sales

783
00:48:43,119 --> 00:48:43,369
and use tax yes sir and and I

784
00:48:46,419 --> 00:48:46,669
thought so and your take on

785
00:48:47,252 --> 00:48:47,502
how that's risen our our

786
00:48:49,586 --> 00:48:49,836
revenue from that

787
00:48:54,386 --> 00:48:54,636
category so the increase there

788
00:48:55,119 --> 00:48:55,369
is so looking I'll just do the

789
00:48:58,919 --> 00:48:59,169
fiscal year to date it's15 above

790
00:49:00,719 --> 00:49:00,969
estimate and21.4

791
00:49:01,386 --> 00:49:01,636
above

792
00:49:05,152 --> 00:49:05,402
the first two months of of

793
00:49:08,386 --> 00:49:08,636
last fiscal year and so that

794
00:49:10,719 --> 00:49:10,969
last one is a 6.8% growth and so

795
00:49:12,919 --> 00:49:13,169
two primary things that I look

796
00:49:14,852 --> 00:49:15,102
at there first is it growing or

797
00:49:18,419 --> 00:49:18,669
not so our people spending more

798
00:49:19,119 --> 00:49:19,369
money in the west Virginian

799
00:49:20,886 --> 00:49:21,136
economy are they buying more

800
00:49:22,619 --> 00:49:22,869
things than they were last year

801
00:49:24,419 --> 00:49:24,669
and they are so that's check one

802
00:49:25,119 --> 00:49:25,369
that's that's good and then the

803
00:49:26,886 --> 00:49:27,136
second thing that I look at is

804
00:49:28,919 --> 00:49:29,169
whether or not that rate is

805
00:49:30,419 --> 00:49:30,669
above or below the rate of

806
00:49:31,152 --> 00:49:31,402
inflation and the reason for

807
00:49:34,386 --> 00:49:34,636
that is that if it's if it's

808
00:49:35,019 --> 00:49:35,269
essentially at the rate of

809
00:49:36,419 --> 00:49:36,669
inflation they're not really

810
00:49:38,652 --> 00:49:38,902
buying more stuff they're buying

811
00:49:40,819 --> 00:49:41,069
the same amount of stuff at a

812
00:49:41,486 --> 00:49:41,736
slightly higher price

813
00:49:42,886 --> 00:49:43,136
if it's below the rate of

814
00:49:44,986 --> 00:49:45,236
inflation, yes they're spending

815
00:49:46,419 --> 00:49:46,669
more money but they're actually

816
00:49:48,386 --> 00:49:48,636
getting less for what they're

817
00:49:49,119 --> 00:49:49,369
buying and if it's above the

818
00:49:51,119 --> 00:49:51,369
rate of inflation as it is here

819
00:49:53,119 --> 00:49:53,369
that's sort of the the best case

820
00:49:54,652 --> 00:49:54,902
scenario of the three because

821
00:49:56,919 --> 00:49:57,169
that means that not only has our

822
00:49:58,686 --> 00:49:58,936
spending kept up with the rate

823
00:50:00,419 --> 00:50:00,669
of inflation we're actually

824
00:50:01,086 --> 00:50:01,336
spending more than that so

825
00:50:05,086 --> 00:50:05,336
prices are up3% but we're buying

826
00:50:05,819 --> 00:50:06,069
6.8% more stuff

827
00:50:09,152 --> 00:50:09,402
so there's real growth in the

828
00:50:10,419 --> 00:50:10,669
amount of spending that we're

829
00:50:11,119 --> 00:50:11,369
doing we're actually buying more

830
00:50:14,419 --> 00:50:14,669
things than we were last year I

831
00:50:15,086 --> 00:50:15,336
was then I would agree with

832
00:50:16,619 --> 00:50:16,869
that I was sort of confused on

833
00:50:19,119 --> 00:50:19,369
that because we have lost

834
00:50:21,119 --> 00:50:21,369
some population and so I was

835
00:50:22,419 --> 00:50:22,669
trying to figure out how that

836
00:50:23,152 --> 00:50:23,402
number has grown with less

837
00:50:24,652 --> 00:50:24,902
people in the state while our

838
00:50:27,152 --> 00:50:27,402
our population year over year

839
00:50:29,152 --> 00:50:29,402
was actually almost essentially

840
00:50:33,352 --> 00:50:33,602
flat so for a a state of1.77

841
00:50:35,152 --> 00:50:35,402
million people I believe our

842
00:50:36,486 --> 00:50:36,736
population lost from2024

843
00:50:39,452 --> 00:50:39,702
to2025 was approximately1200

844
00:50:40,119 --> 00:50:40,369
people

845
00:50:43,152 --> 00:50:43,402
yeah and I wasn't saying it was

846
00:50:44,886 --> 00:50:45,136
like major I was just stating

847
00:50:46,652 --> 00:50:46,902
the fact that it has decreased

848
00:50:48,652 --> 00:50:48,902
but yet this number has risen so

849
00:50:50,452 --> 00:50:50,702
I'm just trying to get a I

850
00:50:51,052 --> 00:50:51,302
think you might have alluded to

851
00:50:52,886 --> 00:50:53,136
it as well consumer spending

852
00:50:56,386 --> 00:50:56,636
habits or if it was just that

853
00:50:57,386 --> 00:50:57,636
think it's primarily consumer

854
00:50:58,519 --> 00:50:58,769
spending habits yeah ok

855
00:51:04,619 --> 00:51:04,869
the next one is on the next

856
00:51:06,619 --> 00:51:06,869
page you've might have

857
00:51:08,852 --> 00:51:09,102
already spoken to this but the

858
00:51:13,152 --> 00:51:13,402
corporate net being down33.5%

859
00:51:16,419 --> 00:51:16,669
wass that due to the to the big

860
00:51:18,386 --> 00:51:18,636
bill or is there something else

861
00:51:20,652 --> 00:51:20,902
what's your take on that? think

862
00:51:22,419 --> 00:51:22,669
the the largest piece of that is

863
00:51:24,419 --> 00:51:24,669
the the effects of the the big

864
00:51:26,652 --> 00:51:26,902
beautiful bill we also had

865
00:51:28,919 --> 00:51:29,169
one or two just large refunds

866
00:51:30,752 --> 00:51:31,002
that came out that we weren't

867
00:51:31,419 --> 00:51:31,669
anticipating but I think in

868
00:51:32,786 --> 00:51:33,036
in the grand scheme of things

869
00:51:34,786 --> 00:51:35,036
our estimates

870
00:51:36,752 --> 00:51:37,002
are where we

871
00:51:40,419 --> 00:51:40,669
the actual revenues are where we

872
00:51:42,419 --> 00:51:42,669
expected them to be and where we

873
00:51:44,619 --> 00:51:44,869
expected them to be was down

874
00:51:46,886 --> 00:51:47,136
primarily as a result of

875
00:51:48,386 --> 00:51:48,636
conformity with the big

876
00:51:50,419 --> 00:51:50,669
beautiful beltir and what was

877
00:51:51,352 --> 00:51:51,602
those those one or two large

878
00:51:54,652 --> 00:51:54,902
refunds you were alluding to I

879
00:51:55,352 --> 00:51:55,602
can't talk about specific

880
00:51:56,952 --> 00:51:57,202
taxpayer information just that

881
00:51:58,719 --> 00:51:58,969
there were a couple of large

882
00:51:59,286 --> 00:51:59,536
refunds that

883
00:52:02,386 --> 00:52:02,636
happened in the normal course of

884
00:52:03,119 --> 00:52:03,369
business from time to time

885
00:52:06,419 --> 00:52:06,669
so do you see that as a trend

886
00:52:08,386 --> 00:52:08,636
continuing? no I think they were

887
00:52:10,419 --> 00:52:10,669
one time you know with the the

888
00:52:12,386 --> 00:52:12,636
loss of the the corporate net is

889
00:52:13,152 --> 00:52:13,402
that just going to be sort of

890
00:52:15,119 --> 00:52:15,369
permanent fixture is that

891
00:52:16,419 --> 00:52:16,669
number going to rise? Will it

892
00:52:18,419 --> 00:52:18,669
decrease? There was there was

893
00:52:19,152 --> 00:52:19,402
one element of the big

894
00:52:20,652 --> 00:52:20,902
beautifulau bill that was

895
00:52:22,386 --> 00:52:22,636
temporary there was a temporary

896
00:52:24,419 --> 00:52:24,669
exclusion for new manufacturing

897
00:52:26,386 --> 00:52:26,636
facilities and I believe our

898
00:52:27,452 --> 00:52:27,702
estimate for that was somewhere

899
00:52:28,719 --> 00:52:28,969
in the neighborhood of2

900
00:52:32,652 --> 00:52:32,902
$5 million and I believe the

901
00:52:34,419 --> 00:52:34,669
overall estimate for corporate

902
00:52:35,219 --> 00:52:35,469
net was about100 so

903
00:52:40,419 --> 00:52:40,669
that25 I would imagine

904
00:52:41,152 --> 00:52:41,402
eventually sort of comes back

905
00:52:42,886 --> 00:52:43,136
once that temporary exclusion

906
00:52:44,619 --> 00:52:44,869
goes away and so I would say

907
00:52:46,752 --> 00:52:47,002
about75% of that estimate

908
00:52:47,386 --> 00:52:47,636
is

909
00:52:48,819 --> 00:52:49,069
assuming no other

910
00:52:50,986 --> 00:52:51,236
law changes permanent

911
00:52:52,619 --> 00:52:52,869
thank you

912
00:52:56,819 --> 00:52:57,069
under barrett

913
00:53:00,419 --> 00:53:00,669
thank you Mr President. Pete,

914
00:53:01,052 --> 00:53:01,302
appreciate the presentation as

915
00:53:02,886 --> 00:53:03,136
always I want to follow up on

916
00:53:04,652 --> 00:53:04,902
some questions related to the

917
00:53:06,686 --> 00:53:06,936
the rate of growth for consumer

918
00:53:09,152 --> 00:53:09,402
sales tax compared to the rate

919
00:53:11,186 --> 00:53:11,436
of inflation can you talk about

920
00:53:13,219 --> 00:53:13,469
that rate of growth pre and post

921
00:53:13,886 --> 00:53:14,136
tax cut

922
00:53:17,286 --> 00:53:17,536
that's a good question

923
00:53:21,019 --> 00:53:21,269
I believe

924
00:53:24,886 --> 00:53:25,136
pretax cut I'm try I'm trying to

925
00:53:26,386 --> 00:53:26,636
recall now because I don't

926
00:53:27,052 --> 00:53:27,302
actually have the data in front

927
00:53:27,719 --> 00:53:27,969
of me and I don't want to

928
00:53:30,452 --> 00:53:30,702
and I both don't want to dodge

929
00:53:31,186 --> 00:53:31,436
your question but I also don't

930
00:53:31,852 --> 00:53:32,102
want to say something that's

931
00:53:33,219 --> 00:53:33,469
inaccurate but I believe towards

932
00:53:33,886 --> 00:53:34,136
the end of

933
00:53:38,786 --> 00:53:39,036
fiscal26 so you know34 months

934
00:53:39,452 --> 00:53:39,702
ago

935
00:53:42,419 --> 00:53:42,669
our growth rate in consumer

936
00:53:44,419 --> 00:53:44,669
sales was slightly below the

937
00:53:45,152 --> 00:53:45,402
rate of inflation and now it's

938
00:53:46,919 --> 00:53:47,169
slightly higher so I I believe

939
00:53:48,886 --> 00:53:49,136
in the past couple of months

940
00:53:50,952 --> 00:53:51,202
that growth rate at least on

941
00:53:52,886 --> 00:53:53,136
that measure has has ticked up a

942
00:53:54,419 --> 00:53:54,669
little bit and I'm talking and I

943
00:53:55,186 --> 00:53:55,436
should have said this more

944
00:53:56,919 --> 00:53:57,169
specifically to the large tax

945
00:53:58,652 --> 00:53:58,902
cut in the beginning of24,

946
00:54:01,152 --> 00:54:01,402
the21.25cent tax. I I wanna

947
00:54:04,686 --> 00:54:04,936
understand that the part of the

948
00:54:06,419 --> 00:54:06,669
the intention of a tax cut,

949
00:54:07,119 --> 00:54:07,369
you know what we anticipate to

950
00:54:08,652 --> 00:54:08,902
happen when you cut personal

951
00:54:09,286 --> 00:54:09,536
income tax is that there will be

952
00:54:09,952 --> 00:54:10,202
more consum

953
00:54:12,486 --> 00:54:12,736
er spending, higher collection

954
00:54:13,252 --> 00:54:13,502
on consumer sales tax and I want

955
00:54:15,152 --> 00:54:15,402
to understand that that's if

956
00:54:18,619 --> 00:54:18,869
that took place or not think you

957
00:54:21,152 --> 00:54:21,402
see some increase in taxes. I

958
00:54:23,119 --> 00:54:23,369
don't think I mean if you flip

959
00:54:24,686 --> 00:54:24,936
to this what slide is it for

960
00:54:26,919 --> 00:54:27,169
here and you look at that orange

961
00:54:29,019 --> 00:54:29,269
line that is the sales tax line

962
00:54:29,719 --> 00:54:29,969
I mean if you if you

963
00:54:31,819 --> 00:54:32,069
if you if you took away that red

964
00:54:32,486 --> 00:54:32,736
line

965
00:54:32,736 --> 00:54:32,986
and

966
00:54:36,552 --> 00:54:36,802
asked somebody where did the PT

967
00:54:37,186 --> 00:54:37,436
cut happen

968
00:54:40,619 --> 00:54:40,869
and

969
00:54:43,119 --> 00:54:43,369
and I think part of that is that

970
00:54:44,952 --> 00:54:45,202
and I think this is a bit of a

971
00:54:45,619 --> 00:54:45,869
misnomer when

972
00:54:48,686 --> 00:54:48,936
when you have these these tax

973
00:54:50,386 --> 00:54:50,636
cuts like this. I think the idea

974
00:54:52,386 --> 00:54:52,636
is that that you put additional

975
00:54:53,119 --> 00:54:53,369
dollars into the economy and

976
00:54:54,886 --> 00:54:55,136
that the person who is spending

977
00:54:56,419 --> 00:54:56,669
that dollar spends that dollar

978
00:54:57,119 --> 00:54:57,369
more efficiently than the

979
00:54:58,852 --> 00:54:59,102
government does and that there's

980
00:55:00,652 --> 00:55:00,902
a return on that investment in

981
00:55:02,852 --> 00:55:03,102
the private sector I don't think

982
00:55:04,619 --> 00:55:04,869
you see as much of that in in

983
00:55:05,419 --> 00:55:05,669
tax collections I don't think

984
00:55:06,086 --> 00:55:06,336
there's a return on investment

985
00:55:10,386 --> 00:55:10,636
to the general revenue fund as a

986
00:55:11,152 --> 00:55:11,402
result of that because if I hand

987
00:55:13,186 --> 00:55:13,436
you a dollar back and you go and

988
00:55:14,652 --> 00:55:14,902
spend it on something that

989
00:55:15,419 --> 00:55:15,669
generates consumer sales tax

990
00:55:16,519 --> 00:55:16,769
I've given you a dollar but

991
00:55:18,852 --> 00:55:19,102
the general revenue fund has

992
00:55:19,452 --> 00:55:19,702
gotten 6 cents back

993
00:55:20,952 --> 00:55:21,202
all right

994
00:55:22,519 --> 00:55:22,769
thank you thank you Mr

995
00:55:22,986 --> 00:55:23,236
President.

996
00:55:24,852 --> 00:55:25,102
ri

997
00:55:27,186 --> 00:55:27,436
yeah a couple follow up

998
00:55:27,686 --> 00:55:27,936
questions

999
00:55:32,886 --> 00:55:33,136
last time we met we talked about

1000
00:55:34,952 --> 00:55:35,202
the severance tax case that was

1001
00:55:35,619 --> 00:55:35,869
before

1002
00:55:36,952 --> 00:55:37,202
at the end of the fiscal year

1003
00:55:41,152 --> 00:55:41,402
did we make those refunds in

1004
00:55:41,752 --> 00:55:42,002
this fiscal year

1005
00:55:44,886 --> 00:55:45,136
we made all of the refunds that

1006
00:55:47,219 --> 00:55:47,469
we were able to in fiscal

1007
00:55:47,786 --> 00:55:48,036
year2026.

1008
00:55:50,619 --> 00:55:50,869
we made a concerted effort to

1009
00:55:52,386 --> 00:55:52,636
get as many of those out the

1010
00:55:54,386 --> 00:55:54,636
door as possible. We did not get

1011
00:55:55,086 --> 00:55:55,336
all of them out the door

1012
00:55:57,086 --> 00:55:57,336
however, because some of those

1013
00:55:58,652 --> 00:55:58,902
cases where they were throughout

1014
00:56:00,452 --> 00:56:00,702
the process whether they were

1015
00:56:04,419 --> 00:56:04,669
withotta the ICA or or up

1016
00:56:05,119 --> 00:56:05,369
with the Supreme court some of

1017
00:56:06,886 --> 00:56:07,136
those had other issues

1018
00:56:09,186 --> 00:56:09,436
intertwined that were not just

1019
00:56:10,919 --> 00:56:11,169
relevant to theecuador case you

1020
00:56:14,052 --> 00:56:14,302
couldn't sort of unwind those

1021
00:56:14,919 --> 00:56:15,169
complexities where that may have

1022
00:56:16,652 --> 00:56:16,902
just been one amongst a number

1023
00:56:17,252 --> 00:56:17,502
of issues relevant to that case

1024
00:56:20,852 --> 00:56:21,102
so there are some other cases

1025
00:56:23,119 --> 00:56:23,369
out there that could eventually

1026
00:56:26,419 --> 00:56:26,669
be impacted by that ruling where

1027
00:56:27,386 --> 00:56:27,636
sort of the other issues haven't

1028
00:56:29,119 --> 00:56:29,369
been resolved to the point where

1029
00:56:31,152 --> 00:56:31,402
that case can be resolved in

1030
00:56:32,886 --> 00:56:33,136
what it manner whatever manner

1031
00:56:34,652 --> 00:56:34,902
it's going to be resolved in yet

1032
00:56:36,386 --> 00:56:36,636
but all the ones that we were

1033
00:56:37,119 --> 00:56:37,369
able to take care of where that

1034
00:56:39,152 --> 00:56:39,402
was the issue. those were all

1035
00:56:41,119 --> 00:56:41,369
paid out in FY2026. do you have

1036
00:56:43,152 --> 00:56:43,402
a number of anticipation on what

1037
00:56:44,619 --> 00:56:44,869
your reduction would be in

1038
00:56:46,386 --> 00:56:46,636
severance tax for the cases that

1039
00:56:47,252 --> 00:56:47,502
are still pending. I believe we

1040
00:56:47,919 --> 00:56:48,169
tried to

1041
00:56:50,386 --> 00:56:50,636
put a number on that we had a

1042
00:56:51,119 --> 00:56:51,369
number and I believe it was

1043
00:56:54,386 --> 00:56:54,636
about15 million dollars of what

1044
00:56:55,086 --> 00:56:55,336
we were able to immediately pay

1045
00:56:57,086 --> 00:56:57,336
out. I don't think we were able

1046
00:56:58,419 --> 00:56:58,669
to come up with a number on

1047
00:57:01,119 --> 00:57:01,369
these remaining cases because we

1048
00:57:04,386 --> 00:57:04,636
weren't able to say well you

1049
00:57:05,119 --> 00:57:05,369
know if there's3 issues here and

1050
00:57:07,119 --> 00:57:07,369
we know what this one is how

1051
00:57:08,652 --> 00:57:08,902
would these other two resolve

1052
00:57:10,419 --> 00:57:10,669
and if they resolve one way it

1053
00:57:11,119 --> 00:57:11,369
might end up being less if it

1054
00:57:12,386 --> 00:57:12,636
resolves another way it may end

1055
00:57:13,086 --> 00:57:13,336
up being more and I think we

1056
00:57:15,119 --> 00:57:15,369
were unable to put an estimate

1057
00:57:17,219 --> 00:57:17,469
on those remaining cases because

1058
00:57:17,886 --> 00:57:18,136
of the fact that there were

1059
00:57:20,652 --> 00:57:20,902
other things that could affect

1060
00:57:22,619 --> 00:57:22,869
that amount that we don't know

1061
00:57:24,852 --> 00:57:25,102
how they'll wind up yet. Do you

1062
00:57:26,619 --> 00:57:26,869
anticipate being able to pay

1063
00:57:27,319 --> 00:57:27,569
those out during this fiscal

1064
00:57:30,386 --> 00:57:30,636
year or do you have any clue

1065
00:57:32,852 --> 00:57:33,102
don't I'm not you know, I don't

1066
00:57:34,652 --> 00:57:34,902
sort of work with those cases

1067
00:57:35,319 --> 00:57:35,569
day to day. I don't know exactly

1068
00:57:36,619 --> 00:57:36,869
where they are. I don't know how

1069
00:57:38,619 --> 00:57:38,869
many of them are you know close

1070
00:57:39,319 --> 00:57:39,569
to a resolution I believe I

1071
00:57:41,086 --> 00:57:41,336
believe you know just as a as a

1072
00:57:42,786 --> 00:57:43,036
example I believe thisecuador

1073
00:57:43,452 --> 00:57:43,702
case had

1074
00:57:46,386 --> 00:57:46,636
severance tax payments that went

1075
00:57:48,419 --> 00:57:48,669
back as far as2016 that we

1076
00:57:49,286 --> 00:57:49,536
ultimately issued a refund on so

1077
00:57:49,952 --> 00:57:50,202
these things can take

1078
00:57:53,119 --> 00:57:53,369
quite a long time all right

1079
00:57:56,386 --> 00:57:56,636
then the last question I I

1080
00:57:58,419 --> 00:57:58,669
noticed in trending on your

1081
00:58:00,952 --> 00:58:01,202
estimates and the revenues from

1082
00:58:01,619 --> 00:58:01,869
over your estimates

1083
00:58:02,852 --> 00:58:03,102
on a liquor

1084
00:58:04,552 --> 00:58:04,802
cigarettes

1085
00:58:05,019 --> 00:58:05,269
and lottery

1086
00:58:09,186 --> 00:58:09,436
can you can you read anything

1087
00:58:09,852 --> 00:58:10,102
into that

1088
00:58:12,886 --> 00:58:13,136
or a historical information

1089
00:58:14,919 --> 00:58:15,169
based on those three items where

1090
00:58:16,486 --> 00:58:16,736
we are going with our

1091
00:58:16,952 --> 00:58:17,202
discretionary dollars

1092
00:58:20,952 --> 00:58:21,202
Um, so

1093
00:58:24,652 --> 00:58:24,902
on tobacco I've actually been

1094
00:58:29,152 --> 00:58:29,402
quite frankly I've been

1095
00:58:30,886 --> 00:58:31,136
surprised that we've beaten the

1096
00:58:32,919 --> 00:58:33,169
estimate we've we've failed to

1097
00:58:34,386 --> 00:58:34,636
meet the estimate. I feel like

1098
00:58:35,019 --> 00:58:35,269
I've either come up here when

1099
00:58:36,919 --> 00:58:37,169
we've put together our press

1100
00:58:37,552 --> 00:58:37,802
releases I feel like I was

1101
00:58:38,652 --> 00:58:38,902
beating a dead horse of just

1102
00:58:40,686 --> 00:58:40,936
saying in tobacco missed the

1103
00:58:42,386 --> 00:58:42,636
estimate again and missed the

1104
00:58:44,919 --> 00:58:45,169
estimate again I'm frankly not

1105
00:58:46,386 --> 00:58:46,636
entirely sure what's going on

1106
00:58:47,152 --> 00:58:47,402
with our tobacco products taxes

1107
00:58:48,719 --> 00:58:48,969
there they continue

1108
00:58:51,252 --> 00:58:51,502
they continue to overall trend

1109
00:58:53,152 --> 00:58:53,402
downward but we've had frankly

1110
00:58:54,919 --> 00:58:55,169
we've had a couple of good

1111
00:58:56,652 --> 00:58:56,902
months there. I'm not really I'm

1112
00:58:58,386 --> 00:58:58,636
not ready to call that sort of a

1113
00:58:59,519 --> 00:58:59,769
a shift in the trend yet but

1114
00:59:04,652 --> 00:59:04,902
I am I am frankly a little

1115
00:59:06,652 --> 00:59:06,902
happy to see that we at least so

1116
00:59:07,352 --> 00:59:07,602
far knock on wood that we've

1117
00:59:10,652 --> 00:59:10,902
not overestimated the tobacco

1118
00:59:14,652 --> 00:59:14,902
products tax again on on the

1119
00:59:16,652 --> 00:59:16,902
liquor taxes we have seen a

1120
00:59:18,486 --> 00:59:18,736
little bit of slowdown in

1121
00:59:21,219 --> 00:59:21,469
overall consumption rates but

1122
00:59:23,186 --> 00:59:23,436
this is also partially that you

1123
00:59:25,152 --> 00:59:25,402
know the liquor is is a is a

1124
00:59:28,386 --> 00:59:28,636
percent wholesale tax and so as

1125
00:59:29,019 --> 00:59:29,269
prices go up even if you have

1126
00:59:30,419 --> 00:59:30,669
slightly down consumption and

1127
00:59:31,052 --> 00:59:31,302
you know it's a balance between

1128
00:59:32,919 --> 00:59:33,169
consumption slightly down but

1129
00:59:34,386 --> 00:59:34,636
prices are slightly up so how

1130
00:59:38,386 --> 00:59:38,636
does that net out and then on

1131
00:59:40,886 --> 00:59:41,136
lottery on lottery lottery

1132
00:59:42,419 --> 00:59:42,669
has continued lottery has had

1133
00:59:44,419 --> 00:59:44,669
some struggles with the

1134
00:59:45,186 --> 00:59:45,436
traditional lottery most of

1135
00:59:48,719 --> 00:59:48,969
lotteries increases recently

1136
00:59:49,386 --> 00:59:49,636
the the the real area of

1137
00:59:50,686 --> 00:59:50,936
growth that they've seen has

1138
00:59:52,619 --> 00:59:52,869
been in the the iaming category

1139
00:59:54,886 --> 00:59:55,136
and and the sports wa wagering

1140
00:59:56,652 --> 00:59:56,902
those are the sort of you know

1141
00:59:57,319 --> 00:59:57,569
the the new sort of

1142
01:00:02,386 --> 01:00:02,636
fresh I think more exciting

1143
01:00:03,019 --> 01:00:03,269
especially for the for the

1144
01:00:04,619 --> 01:00:04,869
younger demographics. those are

1145
01:00:06,352 --> 01:00:06,602
the places where we have seen

1146
01:00:07,352 --> 01:00:07,602
actual increases in revenue. I

1147
01:00:08,619 --> 01:00:08,869
think most of the other

1148
01:00:10,886 --> 01:00:11,136
categories have been relatively

1149
01:00:12,886 --> 01:00:13,136
flat or even in some cases

1150
01:00:14,886 --> 01:00:15,136
slightly declining so it appears

1151
01:00:15,619 --> 01:00:15,869
that our people were staying

1152
01:00:16,286 --> 01:00:16,536
home

1153
01:00:18,652 --> 01:00:18,902
smoking cigarettes drinking

1154
01:00:19,219 --> 01:00:19,469
their liquor and playing

1155
01:00:19,752 --> 01:00:20,002
eyeammes

1156
01:00:22,786 --> 01:00:23,036
that that would be a a

1157
01:00:25,252 --> 01:00:25,502
a conclusion that you could make

1158
01:00:25,952 --> 01:00:26,202
right thank you

1159
01:00:32,619 --> 01:00:32,869
Any further questions forharon

1160
01:00:33,286 --> 01:00:33,536
not

1161
01:00:36,552 --> 01:00:36,802
thank you deputy secret Shirley

1162
01:00:37,219 --> 01:00:37,469
for present report

1163
01:00:41,152 --> 01:00:41,402
next on the agenda is

1164
01:00:42,919 --> 01:00:43,169
doctorctor Hannahha Hazard

1165
01:00:44,652 --> 01:00:44,902
Jenkins executive chair and

1166
01:00:46,752 --> 01:00:47,002
director of Wvu Cancer

1167
01:00:47,219 --> 01:00:47,469
Institute

1168
01:00:50,619 --> 01:00:50,869
Mr President, thank you very

1169
01:00:51,352 --> 01:00:51,602
much for the opportunity to be

1170
01:00:54,386 --> 01:00:54,636
here today if you're ok with

1171
01:00:54,986 --> 01:00:55,236
that I'll pull up our

1172
01:00:56,486 --> 01:00:56,736
presentation as we walk through

1173
01:00:58,919 --> 01:00:59,169
the slides that have already

1174
01:00:59,519 --> 01:00:59,769
been provided for you

1175
01:01:02,486 --> 01:01:02,736
prior to today

1176
01:01:10,386 --> 01:01:10,636
so I I just as a level set our

1177
01:01:11,119 --> 01:01:11,369
purpose is really to change the

1178
01:01:13,119 --> 01:01:13,369
way cancer is experienced and

1179
01:01:14,652 --> 01:01:14,902
happens in the state of west

1180
01:01:15,452 --> 01:01:15,702
Virginia and the goal would be

1181
01:01:16,119 --> 01:01:16,369
to reduce the mortality

1182
01:01:18,886 --> 01:01:19,136
reduce the incidence which is

1183
01:01:20,652 --> 01:01:20,902
actually the ultimate goal while

1184
01:01:22,352 --> 01:01:22,602
improving access to clinical

1185
01:01:24,386 --> 01:01:24,636
care clinical trials and

1186
01:01:26,886 --> 01:01:27,136
ideally that then generates a

1187
01:01:28,652 --> 01:01:28,902
reduction in some of the

1188
01:01:30,652 --> 01:01:30,902
healthcare disparities and in

1189
01:01:31,319 --> 01:01:31,569
particular the cancer

1190
01:01:32,986 --> 01:01:33,236
disparities that we see in West

1191
01:01:33,686 --> 01:01:33,936
Virginia

1192
01:01:36,386 --> 01:01:36,636
these are the statistics for

1193
01:01:38,852 --> 01:01:39,102
the state incidents on the one

1194
01:01:40,786 --> 01:01:41,036
side and mortality on the other

1195
01:01:41,452 --> 01:01:41,702
this is by county

1196
01:01:43,352 --> 01:01:43,602
there's some interesting trends

1197
01:01:44,886 --> 01:01:45,136
there that you might notice. for

1198
01:01:46,386 --> 01:01:46,636
example the northern panhandle

1199
01:01:47,086 --> 01:01:47,336
has a little bit of a higher

1200
01:01:48,652 --> 01:01:48,902
incident rate but they actually

1201
01:01:50,652 --> 01:01:50,902
have a better mortality rate and

1202
01:01:52,386 --> 01:01:52,636
on the eastern panhandle we have

1203
01:01:53,286 --> 01:01:53,536
a lower incident rate but a

1204
01:01:53,819 --> 01:01:54,069
higher mortality rate

1205
01:01:56,619 --> 01:01:56,869
so these are the types of

1206
01:01:58,619 --> 01:01:58,869
questions that we then use to

1207
01:02:00,419 --> 01:02:00,669
generate hypotheses and then

1208
01:02:01,452 --> 01:02:01,702
further clinical and

1209
01:02:01,886 --> 01:02:02,136
translational research.

1210
01:02:05,186 --> 01:02:05,436
er ha p s what is most startling

1211
01:02:06,652 --> 01:02:06,902
and really important to look at

1212
01:02:08,886 --> 01:02:09,136
as this2025 report that showed

1213
01:02:10,919 --> 01:02:11,169
that while the national trend

1214
01:02:12,652 --> 01:02:12,902
for mortality is dropping it is

1215
01:02:13,252 --> 01:02:13,502
a very disproportionate drop

1216
01:02:16,886 --> 01:02:17,136
in twenty0 20

1217
01:02:20,652 --> 01:02:20,902
the or sorry in2000 the delta

1218
01:02:22,419 --> 01:02:22,669
between urban versus rural

1219
01:02:24,652 --> 01:02:24,902
per100,000 was about 6.6

1220
01:02:27,119 --> 01:02:27,369
per1und0,000 and in2020 that is

1221
01:02:30,619 --> 01:02:30,869
now25.5 per1und0,000. so while

1222
01:02:32,419 --> 01:02:32,669
we're all dropping we are very

1223
01:02:33,086 --> 01:02:33,336
disproportionately dropping

1224
01:02:36,619 --> 01:02:36,869
and this begs questions like

1225
01:02:37,252 --> 01:02:37,502
what are some of those barriers

1226
01:02:39,219 --> 01:02:39,469
to care and in west Virginia you

1227
01:02:40,919 --> 01:02:41,169
know our rural geography is

1228
01:02:42,386 --> 01:02:42,636
really quite a challenge we're

1229
01:02:44,419 --> 01:02:44,669
the most ruggedly rural state in

1230
01:02:45,152 --> 01:02:45,402
the continental United States.

1231
01:02:46,919 --> 01:02:47,169
a lot of our healthcare

1232
01:02:48,652 --> 01:02:48,902
literacy can also be

1233
01:02:49,186 --> 01:02:49,436
contributory in our

1234
01:02:49,586 --> 01:02:49,836
socioeconomic disadvantage

1235
01:02:52,919 --> 01:02:53,169
and the financial toxicity

1236
01:02:54,386 --> 01:02:54,636
that's associated with the

1237
01:02:56,386 --> 01:02:56,636
cancer diagnosis. all of those

1238
01:02:57,086 --> 01:02:57,336
come together for delayed

1239
01:03:00,386 --> 01:03:00,636
screening, delayed diagnosis

1240
01:03:02,552 --> 01:03:02,802
and then ultimately sort of feed

1241
01:03:03,252 --> 01:03:03,502
into

1242
01:03:05,152 --> 01:03:05,402
I do think financial toxicity is

1243
01:03:07,186 --> 01:03:07,436
an important point to bring up.

1244
01:03:10,619 --> 01:03:10,869
so about40% of all personal

1245
01:03:12,386 --> 01:03:12,636
bankruptcies are associated with

1246
01:03:14,886 --> 01:03:15,136
a medical deb and then about

1247
01:03:16,652 --> 01:03:16,902
a cancer diagnosis is associated

1248
01:03:20,386 --> 01:03:20,636
with a2.65 times increase rate

1249
01:03:21,219 --> 01:03:21,469
of personal bankruptcy

1250
01:03:24,619 --> 01:03:24,869
and those that declare

1251
01:03:26,886 --> 01:03:27,136
bankruptcy have a79% greater

1252
01:03:28,919 --> 01:03:29,169
mortality that is not an

1253
01:03:29,486 --> 01:03:29,736
insignificant number.

1254
01:03:31,619 --> 01:03:31,869
so to sort of delineate all of

1255
01:03:32,286 --> 01:03:32,536
this

1256
01:03:35,152 --> 01:03:35,402
we asked professor Deskins at

1257
01:03:36,919 --> 01:03:37,169
the Chambers College to look at

1258
01:03:38,652 --> 01:03:38,902
the impact of cancer in West

1259
01:03:40,652 --> 01:03:40,902
Virginia in totality so agnostic

1260
01:03:41,452 --> 01:03:41,702
of health system but looking at

1261
01:03:42,152 --> 01:03:42,402
the entire state

1262
01:03:44,686 --> 01:03:44,936
and really it's a public

1263
01:03:46,619 --> 01:03:46,869
healthcare crisis it's a barrier

1264
01:03:48,619 --> 01:03:48,869
to our economic prosperity and

1265
01:03:49,386 --> 01:03:49,636
it has some really negative

1266
01:03:51,152 --> 01:03:51,402
economic consequences so I'm

1267
01:03:52,652 --> 01:03:52,902
just going to show you a couple

1268
01:03:54,386 --> 01:03:54,636
numbers and it's based on the

1269
01:03:55,119 --> 01:03:55,369
lives lost due to cancer

1270
01:03:56,919 --> 01:03:57,169
between2018 and2022.

1271
01:04:01,319 --> 01:04:01,569
so in this economic impact

1272
01:04:04,386 --> 01:04:04,636
report if you look at the direct

1273
01:04:06,652 --> 01:04:06,902
wage and salary loss as well as

1274
01:04:08,386 --> 01:04:08,636
foregone socialalcurity income

1275
01:04:09,119 --> 01:04:09,369
and you add those together it's

1276
01:04:10,552 --> 01:04:10,802
over4 billion dollars.

1277
01:04:14,586 --> 01:04:14,836
if you then look at the medical

1278
01:04:16,652 --> 01:04:16,902
expenses associated with cancer

1279
01:04:18,686 --> 01:04:18,936
we'reat another2.12.2 billion

1280
01:04:19,386 --> 01:04:19,636
dollars

1281
01:04:21,119 --> 01:04:21,369
and this in this case lung

1282
01:04:22,886 --> 01:04:23,136
cancer is the most expensive has

1283
01:04:24,619 --> 01:04:24,869
the greatest piece of the pie

1284
01:04:26,386 --> 01:04:26,636
and when you add all of that up

1285
01:04:28,386 --> 01:04:28,636
it looks like West Virginia

1286
01:04:29,086 --> 01:04:29,336
is foregoing about3 billion

1287
01:04:30,652 --> 01:04:30,902
dollars in total spending

1288
01:04:31,219 --> 01:04:31,469
cumulatively over this decade

1289
01:04:34,652 --> 01:04:34,902
com e of West Virginia would be

1290
01:04:36,619 --> 01:04:36,869
about5 billion dollars higher

1291
01:04:37,386 --> 01:04:37,636
our state and local governments

1292
01:04:39,152 --> 01:04:39,402
are losing about200 million

1293
01:04:40,652 --> 01:04:40,902
dollars in additional tax

1294
01:04:42,386 --> 01:04:42,636
revenue and we're losing

1295
01:04:44,652 --> 01:04:44,902
about5,000 jobs it's important

1296
01:04:46,652 --> 01:04:46,902
to note that the loss of jobs or

1297
01:04:48,619 --> 01:04:48,869
loss of jobs. This does not take

1298
01:04:50,452 --> 01:04:50,702
into account that when

1299
01:04:50,986 --> 01:04:51,236
someone's diagnosed with cancer

1300
01:04:52,886 --> 01:04:53,136
gets treatment, they may not

1301
01:04:54,919 --> 01:04:55,169
return to the same level of

1302
01:04:57,186 --> 01:04:57,436
their capability at work as

1303
01:04:59,119 --> 01:04:59,369
compared to when prior to

1304
01:05:01,219 --> 01:05:01,469
their diagnosis chemobrain is a

1305
01:05:01,919 --> 01:05:02,169
real

1306
01:05:03,552 --> 01:05:03,802
a very tangible thing

1307
01:05:06,619 --> 01:05:06,869
so when you have a problem you

1308
01:05:07,286 --> 01:05:07,536
have to have a solution. I

1309
01:05:08,419 --> 01:05:08,669
learned that from my father

1310
01:05:10,386 --> 01:05:10,636
and so one of those isnciI

1311
01:05:11,086 --> 01:05:11,336
designation and we are one of

1312
01:05:13,119 --> 01:05:13,369
only 6 states east of the

1313
01:05:14,886 --> 01:05:15,136
Mississippi that does not have

1314
01:05:16,886 --> 01:05:17,136
an NCI designated cancer center

1315
01:05:18,852 --> 01:05:19,102
and it matters for a variety of

1316
01:05:19,552 --> 01:05:19,802
reasons. It matters when it

1317
01:05:21,152 --> 01:05:21,402
comes to research because the

1318
01:05:22,886 --> 01:05:23,136
stronger the research is then

1319
01:05:24,652 --> 01:05:24,902
the more that we can do earlier

1320
01:05:26,419 --> 01:05:26,669
trials and translate that

1321
01:05:27,152 --> 01:05:27,402
research into our patients which

1322
01:05:29,086 --> 01:05:29,336
then have with better access

1323
01:05:31,152 --> 01:05:31,402
earlier screening, better

1324
01:05:32,652 --> 01:05:32,902
outcomes and for the state of

1325
01:05:33,286 --> 01:05:33,536
west Virginia it really means it

1326
01:05:33,952 --> 01:05:34,202
helps us retain

1327
01:05:36,819 --> 01:05:37,069
our talent. it allows us to

1328
01:05:38,419 --> 01:05:38,669
attract in new talent brings in

1329
01:05:40,419 --> 01:05:40,669
innovative companies and

1330
01:05:42,386 --> 01:05:42,636
partnerships and where

1331
01:05:43,086 --> 01:05:43,336
partnerships that they're more

1332
01:05:44,619 --> 01:05:44,869
interested in partnering with

1333
01:05:45,252 --> 01:05:45,502
NCI designated cancer centers.

1334
01:05:50,386 --> 01:05:50,636
so we also asked Trip Unbox to

1335
01:05:52,886 --> 01:05:53,136
create a impact report for us

1336
01:05:54,652 --> 01:05:54,902
specifically to the Wv Cancer

1337
01:05:56,886 --> 01:05:57,136
institute as we mature from2025

1338
01:06:00,886 --> 01:06:01,136
to202035 as we move towards NCI

1339
01:06:02,652 --> 01:06:02,902
designation and the data is

1340
01:06:04,886 --> 01:06:05,136
based on about13,000 new cancer

1341
01:06:07,119 --> 01:06:07,369
diagnoses a year our mortality

1342
01:06:08,919 --> 01:06:09,169
rate, which is much higher than

1343
01:06:10,419 --> 01:06:10,669
the national average and

1344
01:06:12,452 --> 01:06:12,702
about20% of the patients and or

1345
01:06:13,152 --> 01:06:13,402
people in west Virginia leave

1346
01:06:13,819 --> 01:06:14,069
the state

1347
01:06:15,186 --> 01:06:15,436
and the impact of gaining

1348
01:06:18,386 --> 01:06:18,636
designation is about2.4 billion

1349
01:06:20,419 --> 01:06:20,669
dollars annually in societal

1350
01:06:22,386 --> 01:06:22,636
value family cost savings

1351
01:06:22,919 --> 01:06:23,169
of18081 million

1352
01:06:26,419 --> 01:06:26,669
and then about almost250 million

1353
01:06:28,552 --> 01:06:28,802
in retained instate money

1354
01:06:29,119 --> 01:06:29,369
spent.

1355
01:06:32,886 --> 01:06:33,136
The NzI designation or that

1356
01:06:34,386 --> 01:06:34,636
grant is really a research

1357
01:06:36,386 --> 01:06:36,636
infrastructure grant so to focus

1358
01:06:37,119 --> 01:06:37,369
specifically on what this will

1359
01:06:38,852 --> 01:06:39,102
do for our research. it's about

1360
01:06:40,852 --> 01:06:41,102
a sixfold increase over the

1361
01:06:42,619 --> 01:06:42,869
course of 10 years. NiaI

1362
01:06:44,619 --> 01:06:44,869
designation unlocks money from

1363
01:06:46,419 --> 01:06:46,669
the federal government there are

1364
01:06:48,386 --> 01:06:48,636
grants you cannot apply to

1365
01:06:50,419 --> 01:06:50,669
unless you're an NCI designated

1366
01:06:51,119 --> 01:06:51,369
cancer center. inndustries are

1367
01:06:52,919 --> 01:06:53,169
more interested in partnering

1368
01:06:54,652 --> 01:06:54,902
with an NCI designated cancer

1369
01:06:55,252 --> 01:06:55,502
center and certainly

1370
01:06:57,119 --> 01:06:57,369
philanthropic sources are much

1371
01:06:59,019 --> 01:06:59,269
more interested from an NCI

1372
01:06:59,552 --> 01:06:59,802
designated cancer center

1373
01:07:02,852 --> 01:07:03,102
increase in jobs

1374
01:07:04,652 --> 01:07:04,902
interestingly for every increase

1375
01:07:06,652 --> 01:07:06,902
in biopharma job there's about

1376
01:07:09,186 --> 01:07:09,436
a3.5 increase in other

1377
01:07:09,652 --> 01:07:09,902
additional jobs

1378
01:07:14,386 --> 01:07:14,636
so if you look at the statewide

1379
01:07:16,386 --> 01:07:16,636
impact as we project towards

1380
01:07:18,619 --> 01:07:18,869
maturity our economic impact our

1381
01:07:20,586 --> 01:07:20,836
projected growth for the for the

1382
01:07:22,852 --> 01:07:23,102
economy is about36%. Our job

1383
01:07:25,152 --> 01:07:25,402
supported is an increase of29%

1384
01:07:28,852 --> 01:07:29,102
and our tax revenue up about27%.

1385
01:07:30,886 --> 01:07:31,136
and then as I said our societal

1386
01:07:32,719 --> 01:07:32,969
value is a2.4 billion dollars

1387
01:07:37,152 --> 01:07:37,402
Wv medicine has invested heavily

1388
01:07:38,886 --> 01:07:39,136
and continues to invest heavily

1389
01:07:40,919 --> 01:07:41,169
in the cancer program and in

1390
01:07:42,852 --> 01:07:43,102
bricks and mortar. so these are

1391
01:07:45,352 --> 01:07:45,602
some current estimates in

1392
01:07:47,119 --> 01:07:47,369
the investment you can see

1393
01:07:49,152 --> 01:07:49,402
here for example wheeling will

1394
01:07:52,619 --> 01:07:52,869
build a new comprehensive

1395
01:07:54,886 --> 01:07:55,136
cancer center there Princeton

1396
01:07:56,886 --> 01:07:57,136
is going to get a wing that

1397
01:07:58,686 --> 01:07:58,936
will bring radiation oncology to

1398
01:08:00,652 --> 01:08:00,902
that campus. other sites like

1399
01:08:02,686 --> 01:08:02,936
Jackson General, Jefferson

1400
01:08:03,252 --> 01:08:03,502
Memorial, Boone, all of those

1401
01:08:03,919 --> 01:08:04,169
are getting

1402
01:08:06,886 --> 01:08:07,136
cancer centers with infusion

1403
01:08:08,586 --> 01:08:08,836
services as well as medical

1404
01:08:10,619 --> 01:08:10,869
oncology services and so this

1405
01:08:12,386 --> 01:08:12,636
represents a substantial

1406
01:08:14,586 --> 01:08:14,836
increase in the economic impact

1407
01:08:16,752 --> 01:08:17,002
to our state. in a variety of

1408
01:08:17,419 --> 01:08:17,669
different ways

1409
01:08:19,119 --> 01:08:19,369
so I truly believe this is a

1410
01:08:20,852 --> 01:08:21,102
transformational opportunity for

1411
01:08:23,119 --> 01:08:23,369
West Virginia both with economic

1412
01:08:24,886 --> 01:08:25,136
impact but let's not forget what

1413
01:08:26,886 --> 01:08:27,136
it means as far as health equity

1414
01:08:28,419 --> 01:08:28,669
and what that translates to

1415
01:08:30,386 --> 01:08:30,636
the people that live here in our

1416
01:08:32,419 --> 01:08:32,669
state and certainly

1417
01:08:33,219 --> 01:08:33,469
developing a workforce over

1418
01:08:33,786 --> 01:08:34,036
time.

1419
01:08:36,619 --> 01:08:36,869
so I'd like to transition and

1420
01:08:38,386 --> 01:08:38,636
just sort of give you an idea of

1421
01:08:39,086 --> 01:08:39,336
some of the things we've

1422
01:08:39,586 --> 01:08:39,836
accomplished over the last

1423
01:08:40,886 --> 01:08:41,136
couple of years. Certainly we

1424
01:08:43,086 --> 01:08:43,336
have hired inappropriate people

1425
01:08:44,652 --> 01:08:44,902
that help can help us navigate

1426
01:08:46,886 --> 01:08:47,136
this mattinfrey behind me is our

1427
01:08:48,386 --> 01:08:48,636
associate director for

1428
01:08:48,819 --> 01:08:49,069
administration he came from

1429
01:08:49,386 --> 01:08:49,636
Nebraska

1430
01:08:51,119 --> 01:08:51,369
he is well versed in the grant

1431
01:08:52,619 --> 01:08:52,869
and the things that we need to

1432
01:08:54,619 --> 01:08:54,869
do establishing an internal

1433
01:08:56,619 --> 01:08:56,869
advisory board so within our

1434
01:08:57,352 --> 01:08:57,602
own institution that's headed by

1435
01:08:59,119 --> 01:08:59,369
Sally Hotter who is the head of

1436
01:09:02,386 --> 01:09:02,636
CTSI building out our clinical

1437
01:09:03,086 --> 01:09:03,336
research program so I'll show

1438
01:09:05,119 --> 01:09:05,369
you a data in the next slide

1439
01:09:06,619 --> 01:09:06,869
about that but really having a

1440
01:09:09,086 --> 01:09:09,336
tremendous increase over200%

1441
01:09:10,719 --> 01:09:10,969
between2023 and2025.

1442
01:09:13,386 --> 01:09:13,636
and then being able to establish

1443
01:09:14,886 --> 01:09:15,136
our research programs again I'll

1444
01:09:16,886 --> 01:09:17,136
articulate that better and then

1445
01:09:18,619 --> 01:09:18,869
lastly really needing to

1446
01:09:22,386 --> 01:09:22,636
invest in the future of our

1447
01:09:23,152 --> 01:09:23,402
state and then the cancer

1448
01:09:23,686 --> 01:09:23,936
programs and biomedical

1449
01:09:24,252 --> 01:09:24,502
research.

1450
01:09:28,386 --> 01:09:28,636
our clinical interventional

1451
01:09:29,052 --> 01:09:29,302
trials so this is what the NCI

1452
01:09:30,852 --> 01:09:31,102
cares about is interventional

1453
01:09:32,586 --> 01:09:32,836
trials and you'll look our

1454
01:09:33,319 --> 01:09:33,569
lowest point was right around

1455
01:09:36,619 --> 01:09:36,869
COID20202021. if you look at the

1456
01:09:39,086 --> 01:09:39,336
increase in from23 to25. that's

1457
01:09:40,519 --> 01:09:40,769
about a200% increase

1458
01:09:42,852 --> 01:09:43,102
but I'd like to call your

1459
01:09:44,419 --> 01:09:44,669
attention to is the last bar

1460
01:09:46,619 --> 01:09:46,869
at210 it's just year to date so

1461
01:09:48,386 --> 01:09:48,636
that's end of august. so if you

1462
01:09:50,919 --> 01:09:51,169
annualize that out it's315

1463
01:09:51,486 --> 01:09:51,736
people put on trial

1464
01:09:56,352 --> 01:09:56,602
which is another5960%

1465
01:09:58,386 --> 01:09:58,636
increase as it is and then if

1466
01:10:00,419 --> 01:10:00,669
you add that in138% increase

1467
01:10:02,686 --> 01:10:02,936
over the year. We care about

1468
01:10:03,252 --> 01:10:03,502
that because it is well

1469
01:10:04,886 --> 01:10:05,136
documented that people on

1470
01:10:06,386 --> 01:10:06,636
clinical trial have a better

1471
01:10:07,119 --> 01:10:07,369
overall cancer outcome than

1472
01:10:08,519 --> 01:10:08,769
those that are not on clinical

1473
01:10:09,186 --> 01:10:09,436
trial.

1474
01:10:12,652 --> 01:10:12,902
Our research programs are3 so

1475
01:10:14,652 --> 01:10:14,902
cancer biology which is the

1476
01:10:16,619 --> 01:10:16,869
basicci component of it

1477
01:10:17,119 --> 01:10:17,369
experimental therapeutics is how

1478
01:10:19,052 --> 01:10:19,302
you translate that basic science

1479
01:10:20,652 --> 01:10:20,902
knowledge to the patients and

1480
01:10:22,852 --> 01:10:23,102
then how do our communities both

1481
01:10:24,852 --> 01:10:25,102
benefit from those

1482
01:10:26,386 --> 01:10:26,636
investments and then those

1483
01:10:27,086 --> 01:10:27,336
findings but then also telling

1484
01:10:29,086 --> 01:10:29,336
us where we need to investigate

1485
01:10:31,119 --> 01:10:31,369
and Lucas which is outside is a

1486
01:10:32,652 --> 01:10:32,902
classic example of listening to

1487
01:10:34,652 --> 01:10:34,902
our communities with their high

1488
01:10:36,752 --> 01:10:37,002
cancer lung cancer incidents and

1489
01:10:37,419 --> 01:10:37,669
late

1490
01:10:40,386 --> 01:10:40,636
late diagnosis Each of these

1491
01:10:41,152 --> 01:10:41,402
three programs needs a certain

1492
01:10:42,886 --> 01:10:43,136
amount of funding and from a

1493
01:10:43,486 --> 01:10:43,736
certain number of researchers

1494
01:10:47,119 --> 01:10:47,369
so what does the support grant

1495
01:10:50,652 --> 01:10:50,902
fund and and take part in how

1496
01:10:52,619 --> 01:10:52,869
do we and what have we done so

1497
01:10:54,386 --> 01:10:54,636
really on the research it's

1498
01:10:55,119 --> 01:10:55,369
beginning to integrate and

1499
01:10:57,352 --> 01:10:57,602
create this these three

1500
01:10:58,886 --> 01:10:59,136
research programs it will

1501
01:11:00,919 --> 01:11:01,169
require considerable amount of

1502
01:11:03,186 --> 01:11:03,436
recruitment of others coming to

1503
01:11:04,886 --> 01:11:05,136
the cancer institute outside of

1504
01:11:06,686 --> 01:11:06,936
the state in addition to the

1505
01:11:07,319 --> 01:11:07,569
retention of the talent that we

1506
01:11:08,019 --> 01:11:08,269
have

1507
01:11:10,919 --> 01:11:11,169
our clinical research team a

1508
01:11:12,386 --> 01:11:12,636
lot of this growth is because we

1509
01:11:14,386 --> 01:11:14,636
reorganized it we invested in it

1510
01:11:15,119 --> 01:11:15,369
and the people that help us run

1511
01:11:17,152 --> 01:11:17,402
it to allow us to have this kind

1512
01:11:19,352 --> 01:11:19,602
of growth we also investing

1513
01:11:20,886 --> 01:11:21,136
in our investigator initiated

1514
01:11:22,952 --> 01:11:23,202
trials so there are trials that

1515
01:11:24,652 --> 01:11:24,902
come from a national perspective

1516
01:11:25,386 --> 01:11:25,636
but there are also trials that

1517
01:11:26,919 --> 01:11:27,169
come from the people that work

1518
01:11:28,386 --> 01:11:28,636
in the cancer institute that

1519
01:11:29,186 --> 01:11:29,436
have ideas and investing in that

1520
01:11:33,186 --> 01:11:33,436
We also shared resources so this

1521
01:11:34,919 --> 01:11:35,169
is a common area where people

1522
01:11:37,419 --> 01:11:37,669
can go to use equipment one of

1523
01:11:38,886 --> 01:11:39,136
the most important things in

1524
01:11:40,652 --> 01:11:40,902
that is what we call biTrac

1525
01:11:41,252 --> 01:11:41,502
which is we're going to study

1526
01:11:43,119 --> 01:11:43,369
the tumors of westvirginians

1527
01:11:44,819 --> 01:11:45,069
instead of buying cancer cells

1528
01:11:45,486 --> 01:11:45,736
from Norway

1529
01:11:48,452 --> 01:11:48,702
I believe in studying our own

1530
01:11:50,452 --> 01:11:50,702
patient population, not that of

1531
01:11:52,386 --> 01:11:52,636
another country and then we

1532
01:11:54,386 --> 01:11:54,636
also have a resource a shared

1533
01:11:55,086 --> 01:11:55,336
resource that looks at health

1534
01:11:57,086 --> 01:11:57,336
communication. so how do we

1535
01:11:58,919 --> 01:11:59,169
learn better to communicate

1536
01:12:00,619 --> 01:12:00,869
which was poor English, which is

1537
01:12:02,419 --> 01:12:02,669
a funny point and then how do

1538
01:12:04,652 --> 01:12:04,902
we translate that back to our

1539
01:12:05,252 --> 01:12:05,502
population I can't treat

1540
01:12:06,652 --> 01:12:06,902
somebody for breast cancer if

1541
01:12:07,286 --> 01:12:07,536
they don't show up at the door

1542
01:12:08,619 --> 01:12:08,869
and they don't show up at the

1543
01:12:09,252 --> 01:12:09,502
door if they don't trust me and

1544
01:12:10,619 --> 01:12:10,869
so how do we talk to our

1545
01:12:11,152 --> 01:12:11,402
population

1546
01:12:13,186 --> 01:12:13,436
investment in the next

1547
01:12:16,686 --> 01:12:16,936
generation so not only our

1548
01:12:18,919 --> 01:12:19,169
PhD students but our clinical

1549
01:12:20,752 --> 01:12:21,002
scientists and our clinicians

1550
01:12:21,352 --> 01:12:21,602
moving forward

1551
01:12:23,152 --> 01:12:23,402
a good bit of investment in our

1552
01:12:24,652 --> 01:12:24,902
community engagement we have

1553
01:12:28,386 --> 01:12:28,636
over700 community partners and

1554
01:12:29,086 --> 01:12:29,336
that's really important to be

1555
01:12:31,152 --> 01:12:31,402
able to invest and mature those

1556
01:12:32,652 --> 01:12:32,902
over time and then really

1557
01:12:34,386 --> 01:12:34,636
building out our infrastructure

1558
01:12:35,186 --> 01:12:35,436
so that way we're able to

1559
01:12:36,986 --> 01:12:37,236
continue to build on the

1560
01:12:37,519 --> 01:12:37,769
successes we've had

1561
01:12:40,919 --> 01:12:41,169
on the horizon, most

1562
01:12:42,886 --> 01:12:43,136
immediately really is our ad

1563
01:12:44,886 --> 01:12:45,136
hoc scientific review so we are

1564
01:12:46,852 --> 01:12:47,102
bringing in leaders in the field

1565
01:12:48,886 --> 01:12:49,136
both Do Jensen and Dr Evers come

1566
01:12:50,652 --> 01:12:50,902
from NCI designated

1567
01:12:52,419 --> 01:12:52,669
Comprehensive cancercerenters.

1568
01:12:53,119 --> 01:12:53,369
Both of them joined their cancer

1569
01:12:54,919 --> 01:12:55,169
centers when they were emerging

1570
01:12:56,886 --> 01:12:57,136
cancer centers like ours and not

1571
01:12:58,652 --> 01:12:58,902
only took them to designation

1572
01:13:00,652 --> 01:13:00,902
but then also to comprehensive

1573
01:13:03,152 --> 01:13:03,402
designation Elektra Pasquette

1574
01:13:05,119 --> 01:13:05,369
is the deputy director at OSU

1575
01:13:06,419 --> 01:13:06,669
She is nationally

1576
01:13:07,286 --> 01:13:07,536
internationally known for her

1577
01:13:07,952 --> 01:13:08,202
community outreach and

1578
01:13:08,386 --> 01:13:08,636
engagement work and then

1579
01:13:10,819 --> 01:13:11,069
Paullo Vertino who is a basic

1580
01:13:13,352 --> 01:13:13,602
scientist has been really a a

1581
01:13:16,419 --> 01:13:16,669
accredited with

1582
01:13:18,419 --> 01:13:18,669
helpingRochester get NCI

1583
01:13:18,986 --> 01:13:19,236
designation which and they're

1584
01:13:19,619 --> 01:13:19,869
one of the most recent NCI

1585
01:13:20,152 --> 01:13:20,402
designated

1586
01:13:23,152 --> 01:13:23,402
in the near future we also need

1587
01:13:24,886 --> 01:13:25,136
to bring in some of those basic

1588
01:13:26,852 --> 01:13:27,102
scientists to help us this group

1589
01:13:28,419 --> 01:13:28,669
ad hoc scientificroup will also

1590
01:13:30,586 --> 01:13:30,836
help us understand sort of where

1591
01:13:31,252 --> 01:13:31,502
our best investments are.

1592
01:13:34,852 --> 01:13:35,102
incor is a community oncology

1593
01:13:35,486 --> 01:13:35,736
research grant that will go in

1594
01:13:36,919 --> 01:13:37,169
on Thursday. This is about a

1595
01:13:38,686 --> 01:13:38,936
million dollars a year funding

1596
01:13:39,286 --> 01:13:39,536
if we get the grant to help

1597
01:13:42,419 --> 01:13:42,669
support the clinical trials not

1598
01:13:44,386 --> 01:13:44,636
just in Morgantown but outside

1599
01:13:45,119 --> 01:13:45,369
of Morgantown because we are a

1600
01:13:48,419 --> 01:13:48,669
state of1.77. Not everybody can

1601
01:13:50,419 --> 01:13:50,669
travel to Morgantownn so we have

1602
01:13:52,386 --> 01:13:52,636
to think about how we can

1603
01:13:53,119 --> 01:13:53,369
deliver that kind of quality of

1604
01:13:54,552 --> 01:13:54,802
care outside of Morgantown.

1605
01:13:58,652 --> 01:13:58,902
so in summary where you live

1606
01:13:59,219 --> 01:13:59,469
should never determine your

1607
01:14:00,919 --> 01:14:01,169
cancer outcome and that's

1608
01:14:01,519 --> 01:14:01,769
what we're trying to accomplish

1609
01:14:02,886 --> 01:14:03,136
today. So I'm happy to take

1610
01:14:04,719 --> 01:14:04,969
questions thank you very much

1611
01:14:05,386 --> 01:14:05,636
for your attention and time.

1612
01:14:07,052 --> 01:14:07,302
thank you doctor

1613
01:14:08,552 --> 01:14:08,802
delegateri

1614
01:14:09,352 --> 01:14:09,602
thank you Mr President

1615
01:14:14,386 --> 01:14:14,636
About3 or four years ago we

1616
01:14:15,152 --> 01:14:15,402
appropriated about30 million

1617
01:14:15,819 --> 01:14:16,069
dollars

1618
01:14:19,152 --> 01:14:19,402
to the cancer institute and my

1619
01:14:20,886 --> 01:14:21,136
understanding if I recall maybe

1620
01:14:21,552 --> 01:14:21,802
the speaker can remember

1621
01:14:24,619 --> 01:14:24,869
I thought it was towards this

1622
01:14:26,886 --> 01:14:27,136
national cancer facility or so

1623
01:14:28,652 --> 01:14:28,902
we're not there yet is that what

1624
01:14:30,886 --> 01:14:31,136
you're telling this is a no we

1625
01:14:33,119 --> 01:14:33,369
are not there it takes if you

1626
01:14:36,886 --> 01:14:37,136
talk to some of like Kansas

1627
01:14:40,419 --> 01:14:40,669
it took anywhere from15 to20

1628
01:14:41,052 --> 01:14:41,302
years depending on the

1629
01:14:41,486 --> 01:14:41,736
institution

1630
01:14:44,386 --> 01:14:44,636
so we need NCci funding that

1631
01:14:46,386 --> 01:14:46,636
amounts to at least10 million on

1632
01:14:48,886 --> 01:14:49,136
average every year from21

1633
01:14:50,419 --> 01:14:50,669
different researchers or21

1634
01:14:52,652 --> 01:14:52,902
different grants so if we need

1635
01:14:54,652 --> 01:14:54,902
the10 million we're around that4

1636
01:14:57,152 --> 01:14:57,402
to4.5 million dollar mark so

1637
01:14:59,152 --> 01:14:59,402
it takes it is a marathon. it is

1638
01:15:01,386 --> 01:15:01,636
not an immediate I will tell

1639
01:15:04,386 --> 01:15:04,636
you that NI is incredibly

1640
01:15:06,652 --> 01:15:06,902
interested in us becoming an NCI

1641
01:15:07,386 --> 01:15:07,636
designated cancer center

1642
01:15:09,152 --> 01:15:09,402
Appalachia we're all in

1643
01:15:10,686 --> 01:15:10,936
Appalachia that is a big hole

1644
01:15:11,352 --> 01:15:11,602
for them when they

1645
01:15:14,652 --> 01:15:14,902
look at their portfolio so I

1646
01:15:18,386 --> 01:15:18,636
talk with the director of the

1647
01:15:18,986 --> 01:15:19,236
cancer programs on a pretty

1648
01:15:20,919 --> 01:15:21,169
regular basis and so he they

1649
01:15:22,686 --> 01:15:22,936
are interested in us doing it so

1650
01:15:23,386 --> 01:15:23,636
yes it's is a marathon

1651
01:15:26,619 --> 01:15:26,869
so no we are not there yet

1652
01:15:28,552 --> 01:15:28,802
our goal would be before2035 to

1653
01:15:29,219 --> 01:15:29,469
apply for it

1654
01:15:32,386 --> 01:15:32,636
because it's a grant are you

1655
01:15:33,119 --> 01:15:33,369
looking for additional funding

1656
01:15:36,386 --> 01:15:36,636
from the legislature for the for

1657
01:15:38,619 --> 01:15:38,869
this or you just are you here to

1658
01:15:39,319 --> 01:15:39,569
explain what you've done with

1659
01:15:40,652 --> 01:15:40,902
our money so far. I'm here to

1660
01:15:41,319 --> 01:15:41,569
explain I've done with your

1661
01:15:44,386 --> 01:15:44,636
money so far yes at some point

1662
01:15:45,086 --> 01:15:45,336
there we are looking at other

1663
01:15:48,386 --> 01:15:48,636
sources so this is an endeavor

1664
01:15:50,619 --> 01:15:50,869
that will be you know a

1665
01:15:51,352 --> 01:15:51,602
combination of philanthropic

1666
01:15:54,419 --> 01:15:54,669
support funding from a state

1667
01:15:55,152 --> 01:15:55,402
level stunning from the health

1668
01:15:56,886 --> 01:15:57,136
system so there's a multitude of

1669
01:15:59,019 --> 01:15:59,269
factors that go in if you look

1670
01:15:59,719 --> 01:15:59,969
at designated

1671
01:16:01,152 --> 01:16:01,402
and emerging centers that's

1672
01:16:02,886 --> 01:16:03,136
pretty well documented. yes sir.

1673
01:16:03,619 --> 01:16:03,869
right thank you thank you Mr

1674
01:16:04,286 --> 01:16:04,536
President.

1675
01:16:04,752 --> 01:16:05,002
delegate howell

1676
01:16:09,119 --> 01:16:09,369
and thank you for being here Do

1677
01:16:10,886 --> 01:16:11,136
Jenkins. a couple of

1678
01:16:12,852 --> 01:16:13,102
questions I have the report

1679
01:16:14,886 --> 01:16:15,136
indicates that21% of cancer

1680
01:16:16,619 --> 01:16:16,869
services which are provided out

1681
01:16:17,352 --> 01:16:17,602
of state nationally that's

1682
01:16:20,419 --> 01:16:20,669
like7% so we're like three times

1683
01:16:22,386 --> 01:16:22,636
it's high if think if you think

1684
01:16:23,152 --> 01:16:23,402
about some of the border states

1685
01:16:26,619 --> 01:16:26,869
it's easy to go somewhere in

1686
01:16:27,252 --> 01:16:27,502
Ohio when you're on the western

1687
01:16:29,186 --> 01:16:29,436
border and when you're in sort

1688
01:16:31,152 --> 01:16:31,402
of very rural south eastern west

1689
01:16:33,152 --> 01:16:33,402
Virginia it's it's easier

1690
01:16:35,219 --> 01:16:35,469
from a travel perspective yes so

1691
01:16:35,886 --> 01:16:36,136
that you

1692
01:16:38,619 --> 01:16:38,869
may be there with that I look

1693
01:16:39,252 --> 01:16:39,502
out the window home into

1694
01:16:41,119 --> 01:16:41,369
Maryland so I was gonna

1695
01:16:42,886 --> 01:16:43,136
wondering how much of that was

1696
01:16:44,852 --> 01:16:45,102
what cancer treatments and

1697
01:16:46,619 --> 01:16:46,869
procedures are we are most

1698
01:16:48,386 --> 01:16:48,636
commonly leaving the state for

1699
01:16:50,686 --> 01:16:50,936
we have tell yeah there are some

1700
01:16:52,952 --> 01:16:53,202
I would tell you pediatric bone

1701
01:16:54,652 --> 01:16:54,902
marrow transplant always leaves

1702
01:16:56,652 --> 01:16:56,902
the state. we do not have that

1703
01:16:57,286 --> 01:16:57,536
program here in the state

1704
01:17:00,886 --> 01:17:01,136
we have a good proportion I

1705
01:17:02,652 --> 01:17:02,902
mean there are not many programs

1706
01:17:04,386 --> 01:17:04,636
that we don't participate on the

1707
01:17:06,652 --> 01:17:06,902
adult side we do our own

1708
01:17:08,386 --> 01:17:08,636
transplant our own car therapy

1709
01:17:10,419 --> 01:17:10,669
we have highack we have a

1710
01:17:12,652 --> 01:17:12,902
varietyamma knife so some of it

1711
01:17:13,452 --> 01:17:13,702
I think is more convenience

1712
01:17:13,986 --> 01:17:14,236
and travel

1713
01:17:17,086 --> 01:17:17,336
and you

1714
01:17:20,386 --> 01:17:20,636
you kind of touched on this a

1715
01:17:21,019 --> 01:17:21,269
little bit with the listing I

1716
01:17:22,419 --> 01:17:22,669
have a Potomac Valley Hospital

1717
01:17:23,219 --> 01:17:23,469
in my district in Mineral County

1718
01:17:24,652 --> 01:17:24,902
and I know they're they're

1719
01:17:26,919 --> 01:17:27,169
working on that. So how much of

1720
01:17:27,619 --> 01:17:27,869
this is going to be pushed out

1721
01:17:28,886 --> 01:17:29,136
into the counties how much of

1722
01:17:30,386 --> 01:17:30,636
this is going to be more in town

1723
01:17:31,186 --> 01:17:31,436
central cent that it's an

1724
01:17:32,886 --> 01:17:33,136
excellent question so you know

1725
01:17:34,386 --> 01:17:34,636
I'm a clinician so I think of it

1726
01:17:36,652 --> 01:17:36,902
all as being intertwined I

1727
01:17:38,386 --> 01:17:38,636
think we have a network of

1728
01:17:39,152 --> 01:17:39,402
cancer centers that is sort of

1729
01:17:40,919 --> 01:17:41,169
unparalleled for other NCI

1730
01:17:43,152 --> 01:17:43,402
designated cancer centers us

1731
01:17:45,219 --> 01:17:45,469
not being one of them so we will

1732
01:17:45,886 --> 01:17:46,136
the current

1733
01:17:50,619 --> 01:17:50,869
inco grant has an intentional

1734
01:17:52,452 --> 01:17:52,702
increase in trial participation

1735
01:17:53,186 --> 01:17:53,436
at some of the larger regional

1736
01:17:55,152 --> 01:17:55,402
hubs. We also as a health system

1737
01:17:56,686 --> 01:17:56,936
are committed to that and have

1738
01:17:57,352 --> 01:17:57,602
invested in that

1739
01:18:00,886 --> 01:18:01,136
we atriical Access hospitals

1740
01:18:01,486 --> 01:18:01,736
we have to be a little bit

1741
01:18:02,652 --> 01:18:02,902
careful about how much of a

1742
01:18:04,652 --> 01:18:04,902
burden of paperwork and such

1743
01:18:06,886 --> 01:18:07,136
we can put at that level the

1744
01:18:08,852 --> 01:18:09,102
goal I would have is that for

1745
01:18:10,652 --> 01:18:10,902
example patients at Potomac

1746
01:18:12,386 --> 01:18:12,636
Valley might be able to either

1747
01:18:14,419 --> 01:18:14,669
come here or to Martinsburg or

1748
01:18:15,019 --> 01:18:15,269
some version of that for some

1749
01:18:16,652 --> 01:18:16,902
trials so they don't have to

1750
01:18:18,386 --> 01:18:18,636
move and shift as much as

1751
01:18:18,986 --> 01:18:19,236
possible. Garrett's certainly a

1752
01:18:19,652 --> 01:18:19,902
possibility in the future

1753
01:18:23,186 --> 01:18:23,436
I just I am very cognizant that

1754
01:18:24,886 --> 01:18:25,136
everybody can't get to

1755
01:18:26,886 --> 01:18:27,136
Morgantown and you just

1756
01:18:29,152 --> 01:18:29,402
mentioned Garrett hospitalspital

1757
01:18:30,886 --> 01:18:31,136
because that's in Maryland I

1758
01:18:32,652 --> 01:18:32,902
know it's your hospital so it's

1759
01:18:33,352 --> 01:18:33,602
some of the state funding if we

1760
01:18:34,886 --> 01:18:35,136
push in here going to go there

1761
01:18:38,519 --> 01:18:38,769
no this all stays within our

1762
01:18:39,186 --> 01:18:39,436
state

1763
01:18:40,686 --> 01:18:40,936
all right thank you you're very

1764
01:18:41,352 --> 01:18:41,602
welcome

1765
01:18:42,819 --> 01:18:43,069
any further questions

1766
01:18:46,619 --> 01:18:46,869
Mr Speaker thank you Mr

1767
01:18:48,386 --> 01:18:48,636
President Drctoredingas, thank

1768
01:18:49,086 --> 01:18:49,336
you very much for being here and

1769
01:18:50,886 --> 01:18:51,136
and friends for the benefit of

1770
01:18:52,586 --> 01:18:52,836
the committee. I asked Doctor

1771
01:18:54,419 --> 01:18:54,669
Hezer Jenkins to give this

1772
01:18:55,086 --> 01:18:55,336
presentation today for this

1773
01:18:56,852 --> 01:18:57,102
reason we make a lot of

1774
01:18:58,886 --> 01:18:59,136
investments on things that are

1775
01:19:00,886 --> 01:19:01,136
important to a lot of us. We

1776
01:19:02,652 --> 01:19:02,902
support research. those are,

1777
01:19:04,419 --> 01:19:04,669
those are great things to

1778
01:19:06,652 --> 01:19:06,902
support but this is one that I'm

1779
01:19:08,386 --> 01:19:08,636
proud that we supported because

1780
01:19:09,352 --> 01:19:09,602
it is a long time trajectory,

1781
01:19:11,119 --> 01:19:11,369
the time horizon on this process

1782
01:19:13,219 --> 01:19:13,469
is long but it's also a

1783
01:19:16,652 --> 01:19:16,902
real quality of life issue for

1784
01:19:18,386 --> 01:19:18,636
West Virginians and that's

1785
01:19:18,986 --> 01:19:19,236
something I don't want us to

1786
01:19:21,119 --> 01:19:21,369
blow past it's easy to have this

1787
01:19:22,619 --> 01:19:22,869
conversation in terms of

1788
01:19:24,619 --> 01:19:24,869
economic development and job

1789
01:19:26,852 --> 01:19:27,102
impacts and the growth of

1790
01:19:27,452 --> 01:19:27,702
research dollars and what that

1791
01:19:28,886 --> 01:19:29,136
means to our local communities

1792
01:19:30,886 --> 01:19:31,136
and local economies but I'm I'm

1793
01:19:33,119 --> 01:19:33,369
most interested in not letting

1794
01:19:34,652 --> 01:19:34,902
Do. Hezer Jenkins leave this

1795
01:19:36,386 --> 01:19:36,636
podium till we talk just a

1796
01:19:37,086 --> 01:19:37,336
minute about the impact of this

1797
01:19:39,119 --> 01:19:39,369
designation on patients and what

1798
01:19:40,652 --> 01:19:40,902
it would mean for West

1799
01:19:42,652 --> 01:19:42,902
Virginians to have access to an

1800
01:19:43,286 --> 01:19:43,536
NCI des designated facility here

1801
01:19:43,986 --> 01:19:44,236
within our

1802
01:19:45,419 --> 01:19:45,669
borders.

1803
01:19:48,619 --> 01:19:48,869
so it is pretty well documented

1804
01:19:50,619 --> 01:19:50,869
that people taking care of at

1805
01:19:52,386 --> 01:19:52,636
NCI designated centers have a

1806
01:19:53,086 --> 01:19:53,336
better oneyear survival rate

1807
01:19:55,119 --> 01:19:55,369
than those not taking care of at

1808
01:19:56,719 --> 01:19:56,969
an NCI designated cancer center

1809
01:20:00,652 --> 01:20:00,902
if you are in rural West

1810
01:20:02,386 --> 01:20:02,636
Virginia you aren't necessarily

1811
01:20:03,086 --> 01:20:03,336
going to go on the internet and

1812
01:20:04,386 --> 01:20:04,636
look for an NTI designated

1813
01:20:05,152 --> 01:20:05,402
cancer centerer for your cancer

1814
01:20:07,152 --> 01:20:07,402
care. so I'm also very cognizant

1815
01:20:10,386 --> 01:20:10,636
of that what NCI designation

1816
01:20:12,386 --> 01:20:12,636
does from a quality of care

1817
01:20:14,619 --> 01:20:14,869
outcomes does is it attracts in

1818
01:20:16,419 --> 01:20:16,669
and then also retains the talent

1819
01:20:17,186 --> 01:20:17,436
that we have so one of the first

1820
01:20:19,152 --> 01:20:19,402
questions I get from anybody

1821
01:20:21,152 --> 01:20:21,402
interviewing medical oncology

1822
01:20:22,886 --> 01:20:23,136
radiation oncology surgical

1823
01:20:24,652 --> 01:20:24,902
oncologists is where are you on

1824
01:20:26,419 --> 01:20:26,669
the Ncici designation journey

1825
01:20:27,019 --> 01:20:27,269
and are you going to be NCI

1826
01:20:27,586 --> 01:20:27,836
designated

1827
01:20:28,719 --> 01:20:28,969
over the next so many years

1828
01:20:32,886 --> 01:20:33,136
there is a level of training and

1829
01:20:34,619 --> 01:20:34,869
quality of training that we will

1830
01:20:36,386 --> 01:20:36,636
attract to the state that

1831
01:20:38,386 --> 01:20:38,636
elevates the quality of care

1832
01:20:39,119 --> 01:20:39,369
that we have it continues to

1833
01:20:41,119 --> 01:20:41,369
allow us to push the envelope

1834
01:20:42,619 --> 01:20:42,869
and where we are going with our

1835
01:20:44,886 --> 01:20:45,136
cancer care in the state and so

1836
01:20:46,852 --> 01:20:47,102
while it may not be somebody

1837
01:20:48,819 --> 01:20:49,069
googling an NCI designated

1838
01:20:51,086 --> 01:20:51,336
cancer center what it does is it

1839
01:20:54,519 --> 01:20:54,769
sort of all all tides rise

1840
01:20:55,086 --> 01:20:55,336
in that perspective

1841
01:20:57,052 --> 01:20:57,302
so it improves quality of life

1842
01:20:58,886 --> 01:20:59,136
it improves outcomes

1843
01:21:00,919 --> 01:21:01,169
yeah it's a very important

1844
01:21:01,486 --> 01:21:01,736
point.

1845
01:21:04,419 --> 01:21:04,669
it's as a clinician it's easy to

1846
01:21:05,219 --> 01:21:05,469
talk about the clinical

1847
01:21:06,852 --> 01:21:07,102
component and how important this

1848
01:21:10,386 --> 01:21:10,636
is so thank you for that

1849
01:21:12,386 --> 01:21:12,636
question. It's not at all a

1850
01:21:13,152 --> 01:21:13,402
secret that I support

1851
01:21:14,652 --> 01:21:14,902
investments in our economic

1852
01:21:16,386 --> 01:21:16,636
development apparatus everyone

1853
01:21:17,019 --> 01:21:17,269
in the room everyone listening

1854
01:21:18,652 --> 01:21:18,902
knows that I've talked about it

1855
01:21:19,319 --> 01:21:19,569
for years I'll keep talking

1856
01:21:21,186 --> 01:21:21,436
about it but this is an

1857
01:21:24,386 --> 01:21:24,636
investment that we made that is

1858
01:21:25,119 --> 01:21:25,369
not just about the economy it's

1859
01:21:26,886 --> 01:21:27,136
about quality of life for our

1860
01:21:28,919 --> 01:21:29,169
people. This is this is about

1861
01:21:30,752 --> 01:21:31,002
doing something good for West

1862
01:21:31,419 --> 01:21:31,669
Virginians and I'm proud that we

1863
01:21:32,086 --> 01:21:32,336
did it

1864
01:21:36,486 --> 01:21:36,736
Felther questions

1865
01:21:39,286 --> 01:21:39,536
Delicate Mcgeeha

1866
01:21:48,486 --> 01:21:48,736
you're wrong but thank you for

1867
01:21:49,186 --> 01:21:49,436
being here

1868
01:21:57,052 --> 01:21:57,302
that something to the effect of

1869
01:22:00,686 --> 01:22:00,936
I can't get anybody through

1870
01:22:02,686 --> 01:22:02,936
the door. If I don't know how to

1871
01:22:04,486 --> 01:22:04,736
talk to him because they might

1872
01:22:05,186 --> 01:22:05,436
not trust me

1873
01:22:07,486 --> 01:22:07,736
from your perspective in general

1874
01:22:10,686 --> 01:22:10,936
why would the people of the

1875
01:22:11,319 --> 01:22:11,569
state not trust you?

1876
01:22:15,086 --> 01:22:15,336
well I think in general

1877
01:22:17,086 --> 01:22:17,336
people of this state have

1878
01:22:20,419 --> 01:22:20,669
oftentimes greater burdens on

1879
01:22:22,386 --> 01:22:22,636
their mind than preventative

1880
01:22:23,152 --> 01:22:23,402
medicine and healthcare

1881
01:22:26,886 --> 01:22:27,136
screenings so you know it is

1882
01:22:30,386 --> 01:22:30,636
when you are tackling child care

1883
01:22:32,652 --> 01:22:32,902
and keeping the lights on in

1884
01:22:34,419 --> 01:22:34,669
your home and making sure

1885
01:22:35,152 --> 01:22:35,402
there's food on the table I'm a

1886
01:22:36,886 --> 01:22:37,136
breast surgeon so if somebody

1887
01:22:38,886 --> 01:22:39,136
feels a lump they usually will

1888
01:22:41,219 --> 01:22:41,469
prioritize their families

1889
01:22:41,786 --> 01:22:42,036
over themselves in most

1890
01:22:43,386 --> 01:22:43,636
instances

1891
01:22:46,419 --> 01:22:46,669
the part of the regionalization

1892
01:22:48,652 --> 01:22:48,902
of the cancer institute is very

1893
01:22:50,419 --> 01:22:50,669
specifically designed to reduce

1894
01:22:52,386 --> 01:22:52,636
some of those physical barriers

1895
01:22:54,919 --> 01:22:55,169
so if you live in you know roan

1896
01:22:57,186 --> 01:22:57,436
County if you've got a cancer

1897
01:22:58,652 --> 01:22:58,902
center in ome general as opposed

1898
01:23:00,919 --> 01:23:01,169
to having to drive to Charleston

1899
01:23:02,919 --> 01:23:03,169
or to Parkersburg, you might

1900
01:23:03,586 --> 01:23:03,836
show up a little bit earlier

1901
01:23:06,952 --> 01:23:07,202
I don't know that there's a

1902
01:23:10,886 --> 01:23:11,136
distrust. I think it is more of

1903
01:23:13,219 --> 01:23:13,469
a comfort level of walking

1904
01:23:14,919 --> 01:23:15,169
through the door. I think when

1905
01:23:16,786 --> 01:23:17,036
you walk through the door with a

1906
01:23:17,452 --> 01:23:17,702
breast lump

1907
01:23:20,386 --> 01:23:20,636
you kind of play a scenario

1908
01:23:21,119 --> 01:23:21,369
that's pretty significant and

1909
01:23:22,852 --> 01:23:23,102
the ripple effect throughout

1910
01:23:24,652 --> 01:23:24,902
your entire family and community

1911
01:23:25,352 --> 01:23:25,602
is really quite profound

1912
01:23:29,186 --> 01:23:29,436
and so the more comfortable we

1913
01:23:31,152 --> 01:23:31,402
can make it for somebody to walk

1914
01:23:33,152 --> 01:23:33,402
through the door with that and

1915
01:23:35,186 --> 01:23:35,436
the more reasonable those

1916
01:23:36,952 --> 01:23:37,202
socioeconomic and geographic

1917
01:23:38,686 --> 01:23:38,936
challenges can be I think the

1918
01:23:40,952 --> 01:23:41,202
better the what I was referring

1919
01:23:43,219 --> 01:23:43,469
to is called chats which is

1920
01:23:46,652 --> 01:23:46,902
you know talking about science

1921
01:23:48,386 --> 01:23:48,636
translating it into our

1922
01:23:49,186 --> 01:23:49,436
communities it's run by a

1923
01:23:50,652 --> 01:23:50,902
researcher her name's Danell

1924
01:23:51,219 --> 01:23:51,469
Boatman who's a health

1925
01:23:51,786 --> 01:23:52,036
communications expert

1926
01:23:56,386 --> 01:23:56,636
and for example, how a lung

1927
01:23:57,352 --> 01:23:57,602
cancer screening so we got to

1928
01:23:58,886 --> 01:23:59,136
sort of a steady state the

1929
01:24:00,652 --> 01:24:00,902
national average is not super

1930
01:24:01,286 --> 01:24:01,536
high we are lower and eligible

1931
01:24:01,952 --> 01:24:02,202
people

1932
01:24:06,386 --> 01:24:06,636
to screen so she just surveyed

1933
01:24:08,886 --> 01:24:09,136
our communities and as sort of

1934
01:24:10,386 --> 01:24:10,636
what do you what would you

1935
01:24:12,652 --> 01:24:12,902
listen to more so if you look at

1936
01:24:13,419 --> 01:24:13,669
traditional lung cancer

1937
01:24:15,186 --> 01:24:15,436
screening, it is very much

1938
01:24:18,419 --> 01:24:18,669
threatba so standing on piles of

1939
01:24:20,652 --> 01:24:20,902
cigarette butts or burning lungs

1940
01:24:22,386 --> 01:24:22,636
that are matches. those are very

1941
01:24:23,119 --> 01:24:23,369
threatbased and that's pretty

1942
01:24:25,152 --> 01:24:25,402
dull like they just don't listen

1943
01:24:27,219 --> 01:24:27,469
to that but what they did say is

1944
01:24:28,652 --> 01:24:28,902
that when you start talking

1945
01:24:31,186 --> 01:24:31,436
about themes like hope and time

1946
01:24:31,819 --> 01:24:32,069
and families and those kinds of

1947
01:24:32,486 --> 01:24:32,736
things

1948
01:24:34,919 --> 01:24:35,169
that was much more interesting

1949
01:24:37,152 --> 01:24:37,402
to them and so Danell actually

1950
01:24:39,186 --> 01:24:39,436
changed our lung cancer

1951
01:24:42,386 --> 01:24:42,636
screening advertisements and put

1952
01:24:43,452 --> 01:24:43,702
it up on Facebook with a new

1953
01:24:44,919 --> 01:24:45,169
theme associated with it and the

1954
01:24:46,886 --> 01:24:47,136
selfreferrals for lung cancer

1955
01:24:50,652 --> 01:24:50,902
screening went up by243% over

1956
01:24:52,386 --> 01:24:52,636
the course of a two week period

1957
01:24:53,152 --> 01:24:53,402
where it was put on Facebook. so

1958
01:24:55,119 --> 01:24:55,369
it's an example of how we should

1959
01:24:56,652 --> 01:24:56,902
listen to our communities to

1960
01:24:59,252 --> 01:24:59,502
understand how they want to be

1961
01:25:00,919 --> 01:25:01,169
interacted with that we can then

1962
01:25:01,619 --> 01:25:01,869
turn around and help

1963
01:25:05,052 --> 01:25:05,302
reduce some of those mortalities

1964
01:25:05,719 --> 01:25:05,969
and incidents if possible.

1965
01:25:09,286 --> 01:25:09,536
Did I answer your question or

1966
01:25:09,952 --> 01:25:10,202
not really?

1967
01:25:14,819 --> 01:25:15,069
to see how you react.

1968
01:25:16,952 --> 01:25:17,202
any further questions

1969
01:25:20,819 --> 01:25:21,069
If not thank you thank you very

1970
01:25:21,486 --> 01:25:21,736
much for me

1971
01:25:23,186 --> 01:25:23,436
s ir any feller business to come

1972
01:25:23,852 --> 01:25:24,102
before the committee?

1973
01:25:28,419 --> 01:25:28,669
if not I look to Speakerhanshaw

1974
01:25:29,186 --> 01:25:29,436
for a motion to President I move

1975
01:25:30,652 --> 01:25:30,902
the committee meeting adjourn.

1976
01:25:32,652 --> 01:25:32,902
All those in favorick5 by saying

1977
01:25:34,419 --> 01:25:34,669
a all those poses know the eyes

1978
01:25:35,219 --> 01:25:35,469
spirit habit the eyes do have it

1979
01:25:36,486 --> 01:25:36,736
I declare meeting adjourned