West Virginia’s tax collections for the first month of the second half of fiscal year 2025 fell below estimates, marking the third time since last July. Governor Patrick Morrisey and state revenue and budget officials are scrambling to find funds for the next fiscal year. Despite a $27.9 million surplus for the first seven months of the fiscal year, several state departments and agencies are in need of additional funding to make it to the end of the fiscal year.
Morrisey inherited these financial issues from the previous administration, and projects a $400 million hole in the fiscal year 2026 general revenue budget. His upcoming budget presentation to lawmakers will address these concerns, including the underfunding of departments and agencies, reliance on one-time funds, and future expense growth.
Of the major sources of tax revenue, only consumer sales and use tax and corporate net income tax came in above estimates in January. Personal income tax collections were below estimates, despite recent tax cuts that return millions to taxpayers. Severance tax collections for coal, oil, and natural gas also remain below estimates.
Morrisey has expressed support for ongoing tax cuts but insists they must be paid for in the budget. As lawmakers gear up to address these financial challenges during the legislative session, the focus will be on finding solutions to balance the budget and provide necessary funding for state departments and agencies.
Source
Photo credit www.newsandsentinel.com
