Graphic by Steven Allen Adams

CHARLESTON – With two months remaining in fiscal year 2026, West Virginia has enough surplus tax collections to cover all of the items awaiting funding when the new fiscal year begins on July 1.

According to data from the governor’s office and the monthly report released by the Senate Finance Committee last Friday, the state collected $671 million in tax revenue in April, 11.7% more than the $600 million estimate set for the month by the state Department of Revenue, providing West Virginia $70.1 million in surplus tax revenue.

Fiscal year-to-date tax collections of $4.743 billion were 6% more than the $4.474 billion revenue estimate, providing the state with $269.1 million in surplus tax revenue.

“We’re seeing the results of a stronger, more disciplined approach to growing West Virginia’s economy,” said Gov. Patrick Morrisey in a statement Friday. “Ten months into the fiscal year, we’ve already generated a surplus that allows us to fully fund our priorities while continuing to keep our state on solid financial footing.”

In March, the West Virginia Legislature passed, and Morrisey signed with a handful of line-item vetoes, Senate Bill 250, setting the general revenue budget for fiscal year 2027 beginning on July 1 at nearly $5.485 billion.

The surplus section in the back of the FY27 general revenue budget includes $245 million in appropriations. Items in the surplus section are paid in the order they appear based on how much surplus is available at the end of FY26 on June 30.

Surplus items include $60 million for the Hope Scholarship educational voucher program, $250,000 for the Lily’s Place substance use treatment program in Cabell County, $100,000 for the Willow Bend Agricultural Innovation Center in Monroe County, $5 million for Glenville State University, $30 million for the West Virginia Infrastructure and Jobs Development Council, $10 million for the Abandoned and Dilapidated Property Program Fund, $125 million for road and bridge maintenance, $10 million for the Neighborhood Access Road Fund and $5 million for the Flood Resiliency Office Trust Fund.

Positive personal income tax collections, corporate net income tax collections and severance tax collections on coal, oil and natural gas contributed to West Virginia surplus funds.

April personal income tax collections of $294.7 million were 10.4% more than the $267.1 million revenue estimate, providing a $27.7 million surplus for the month. Fiscal year-to-date personal income tax collections of $1.821 billion were 4.9% more than the $1.736 billion revenue estimate, providing the state with $85.1 million in surplus.

April corporate net income tax collections of $80.1 million were 4.7% more than the $76.6 million revenue estimate, adding $3.6 million to surplus collections. Fiscal year-to-date corporate net income tax collections of $267.2 million were 3.5% more than the $258.1 million revenue estimate, adding $9.1 million to the surplus pot.

Severance tax collections of $85.5 million in April exceeded the $34.7 million revenue estimate by 146% and added $50.8 million to the surplus column. Fiscal year-to-date severance tax collections of $431.7 million were nearly 30% more than the $332.2 million revenue estimate, providing the state $99.5 million in surplus.

Of the state’s major revenue streams, only the consumer sales and use tax did not meet the estimate for the month. April sales tax collections of $128.6 million were 9% below the $141.5 million revenue estimate. But fiscal year-to-date sales tax collections remain close to estimates, bringing in $1.585 billion and adding $20.3 million to surplus tax collections.