CHARLESTON, W.Va. — West Virginia’s General Revenue Fund (GRF) collections for July totaled $388 million, coming in $11 million above estimate, or 3% higher than projected. Year‑over‑year, July collections increased slightly — up nearly $1 million, or 0.2%, compared to July 2025.
Governor Patrick Morrisey said the numbers reflect continued fiscal discipline.
“These results demonstrate that West Virginia is on solid financial footing because we’ve remained disciplined with taxpayer dollars,” Morrisey said. “July collections exceeded estimates, and with the books now closed on Fiscal Year 2026, we’re well positioned to carry out the budget enacted for Fiscal Year 2027.”
FY26 Surplus Nears $460 Million
As of August 1, the state officially closed the books on Fiscal Year 2026. GRF collections exceeded estimates by $370 million, combined with $20 million in expirations, $67 million in Lottery and Excess Lottery revenues above estimate, and a small unappropriated balance — resulting in a total surplus of nearly $460 million.
After funding $245 million in GRF surplus items and $38 million in Lottery surplus items, approximately $175 million remains available across General Revenue, Lottery, and Excess Lottery accounts.
Major Surplus Allocations
Key FY27 surplus appropriations included:
- $125 million for highways
- $60 million to fully fund the Hope Scholarship
- $20 million for Medicaid
- $17 million for senior services
- $10 million for abandoned and dilapidated property reclamation
- $5 million for flood resiliency
Revenue Category Performance
- Personal Income Tax: $158 million — $11 million above estimate (7.5%), and $10 million above last July (6.8%). Officials expect growth to slow as the Governor’s 5% rate cut fully phases in.
- Consumer Sales Tax: $150 million — $11 million above estimate (7.9%), and $13 million above last July (10.1%).
- Severance Tax: –$4 million, falling $13 million below estimate due to annual coal distributions and a $22 million infrastructure bond payment.
- Corporate Net Income Tax: $2 million below estimate (10.8%) and $8 million below last July (35.2%).
- Tobacco Products Tax: Slightly above estimate, but $2 million below last July as cigarette consumption continues to decline.
- Interest Income: $10 million — 17.9% above estimate, driven by elevated short‑term interest rates.
State officials say the combination of disciplined budgeting, strong consumer activity, and favorable investment conditions helped stabilize FY26 and position West Virginia for a solid FY27 start.
