The state of West Virginia is preparing for a budget cut of $100 million over the next 2 years.

There are a few reasons for the drop in tax collections — the biggest has been a slowdown in natural gas and coal production, resulting in the severance revenue being much lower than it has been over the last few years.

Senate President Mitch Carmichael acknowledged the proposed cuts will be challenging for state agencies, which are likely to freeze hiring or delay capital expenditures, and that the government will have to tighten its belt.