July 1, 2026 West Virginia Concludes FY 2026 with $370 Million Revenue Surplus ...

CHARLESTON, WV - West Virginia concluded Fiscal Year 2026 with a strong financial performance, as total General Revenue Fund (GRF) collections reached $5.693 billion, outperforming initial state estimates by $370 million, or seven percent. The fiscal year closed on a strong note with June collections surpassing $569 million, beating the monthly estimate by $57 million, or 11.1 percent.

"When you focus on the fundamentals and exercise fiscal discipline, we put West Virginia in a position to end the fiscal year strong as revenues continued to outpace our projections," said Governor Patrick Morrisey. "Because of our significant surplus, we will fund every obligation in the back of the budget, including $125 million for roads and infrastructure, fully fund the Hope Scholarship, and other important priorities. Our next budget will aggressively fund education, foster care, infrastructure, law enforcement, and other key initiatives while providing tax relief to our citizens."

Personal Income Tax collections, the largest individual GRF component, were $237 million in June, exceeding the monthly estimate by $48 million. For FY 2026, Personal Income Tax collections are the single-largest source of collections above estimate at $159 million (7.9%). Collections exceeded estimates significantly but grew over the prior fiscal year by $52 million (2.5%), or below the rate of inflation. Further, these trends do not fully incorporate the rate reductions provided in the previous legislative session.

Consumer Sales Tax collections exceeded the monthly estimate by $4 million (2.5%), with total collections for June reaching $183 million. For FY 2026, collections are 2.2% above estimate ($41 million) and $131 million (7.2%) above the prior fiscal year. The year-over-year growth in Consumer Sales Tax collections is positive news for growing consumption throughout the state, but it should be cautioned that in recent months, including June, growth rates have been positive but below the rate of inflation.

Severance Tax collections were $63 million in June, exceeding the estimate by $30 million. Severance Tax collections exceed their estimate by the second-largest amount for the Fiscal Year, with $534 million in actual collections against an estimate of $398 million, yielding an excess of $136 million. In addition, they have the second-largest year-over-year growth, beating the prior fiscal year by $95 million. The ongoing conflict with Iran will continue to exacerbate the volatility of the GRF's already most volatile revenue source.

Corporate Net Income Tax collections in June were $8 million below estimate. For FY 2026, collections also ended $8 million below estimate and were $70 million less than the prior fiscal year.

Tobacco Products Tax collections exceeded their estimate by $2 million in June and ended the fiscal year with collections below estimate by $3 million, or 2.3%. As consumption patterns shift over time away from traditional cigarette products, it is anticipated that this category will continue to decline.

Interest Income continues to exceed estimates, with $11 million in June versus a $6 million estimate. For FY 2026, collections are $39 million, or 38.3%, above estimate but nearly $45 million below the prior fiscal year. The short-term interest rate environment has remained elevated relative to expectations, leading to higher returns on the State's short-term investments.