COURT STRIKES DOWN ECONOMIC DEVELOPMENT COMMITTEE - Legislature Violated Separation Of Powers

(05/18/2003)
The West Virginia Supreme Court has voided the legislature's Economic Development Grant Committee, but upheld its basic function of funding job and community projects with grants underwritten by public bonds.

The multi-million dollar program provided funds for several programs that could create jobs, while others seemed to be more related to "budget digest types of grants." They ruled 3-2 this week to void 35 projects in 22 counties, including money for a minor-league baseball park in Charleston's minor league ball park and an outlet mall in Wheeling.

The $70 million dollar grant to the Wheeling outlet mall has been questioned, since these kinds of projects have been failing around the country.

The court said the committee had created some constitutional flaws.

The court said lawmakers violated the constitutional separation of powers when they gave themselves the authority to help pick committee members. It faulted the absence of "necessary standards that the committee must apply in identifying and certifying projects."

Friday's ruling by the high court came in a lawsuit filed by the West Virginia Citizen Action Group, which challenged the committee's authority.

Gov. Wise said the program would be re-visited and it will move ahead. It will likely fund some of the noncontroversial projects in outlined in the special bill.

"The court is saying, 'Go back, do it right and do it in sunlight," said Norm Steenstra, a member of the citizen's group.