Governor Patrick Morrisey presented a balanced general revenue budget for fiscal year 2026 to lawmakers after identifying a $397 million hole in the upcoming budget. The budget bill, HB 2026, estimates $5.323 billion in revenue for the fiscal year beginning in July, a 1.1% increase from the current year. Budget Director Mike McKown explained that the gap was not a deficit but a budgeting tool to address expenses exceeding revenues. To balance the budget, revenue adjustments, lottery revenue increases, targeted cuts, and program restructuring were implemented. The budget includes a $40 million allocation for economic development and fully funds essential programs like Medicaid and education.
Morrisey’s budget also addresses future expenses, including a 3% pay raise for public employees, projected increases in public employee health insurance, and the Hope Scholarship program. The Hope Scholarship, expected to cost over $300 million annually by fiscal year 2027, allows parents to use state funds for educational expenses. The budget forecast shows narrower gaps in future years, with improvements in balancing revenues and expenses. The budget does not rely on reserve funds and provides full funding for essential programs without cuts.
The administration aims to consolidate state departments, implement targeted cuts, and optimize resources to maintain a balanced budget. By addressing revenue shortfalls and implementing cost-saving measures, West Virginia’s fiscal outlook is more stable in the long term. The Department of Revenue officials provided a briefing to the Senate Finance Committee to explain the budget details. The budget reflects Morrisey’s commitment to transparency and responsible financial management.
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