West Virginia Reports Record Tax Surplus in April Amid Budgetary Caution
CHARLESTON — West Virginia’s financial landscape took a positive turn in April as the state experienced its largest single-month surplus in tax collections, amounting to over $237 million above estimates. The Department of Revenue reported that general revenue fund collections reached $643.8 million in April, exceeding the $507.8 million estimate by 26.8%. For fiscal year 2025, which concludes on June 30, total tax collections have hit $4.6 billion, surpassing expectations by 5.4%.
Governor Patrick Morrisey welcomed the news, stating that the surplus would aid in addressing future fiscal challenges. He emphasized the importance of prudent budgeting due to known obstacles such as the Public Employees Insurance Agency (PEIA) and potential shifts in federal tax policy.
The surge in tax revenue was largely attributed to a noteworthy rise in personal income tax payments, which reached $284.7 million in April—44.8% higher than anticipated. This contributed significantly to a year-to-date surplus of $237 million.
Despite the impressive surplus, much of the revenue is earmarked for various appropriations. During the recent legislative session, over $126.2 million in supplemental appropriations were approved, leaving around $110.8 million unallocated. Key expenditures include funding for Medicaid services, educational vouchers, and road maintenance projects.
As part of the budgeting process, the legislature set the fiscal year 2026 budget at $5.318 billion, though Morrisey’s vetoes trimmed this down to $5.28 billion. He noted the need for a cautious fiscal approach, citing potential future budget gaps and challenges surrounding Medicaid and PEIA.
All in all, while West Virginia celebrates its financial windfall, strategic planning and conservative budgeting remain essential as the state navigates upcoming fiscal hurdles.
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