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Report: West Virginia Must Shift Focus to Services as Population Declines

CHARLESTON, W.Va. — Policy analysts say West Virginia must rethink how it attracts and keeps residents as the state continues to lose population at one of the fastest rates in the country.

A new report from the West Virginia Center on Budget and Policy found the state has experienced the nation’s largest population decline over the past five years, dropping nearly 1.5%. The center is urging lawmakers to prioritize investments in services such as childcare, education and health care rather than relying heavily on tax cuts to spur growth.

Sean O’Leary, a senior policy analyst with the center, said state leaders have focused too narrowly on tax policy while overlooking the everyday factors that influence where people choose to live.

“A big thing is childcare,” O’Leary said. “We hear all the time about what a problem childcare is for people working. If West Virginia were to have some sort of universal childcare program, that would be a big improvement.”

O’Leary said stronger support for schools and health systems could make the state more competitive for families and employers.

This spring, the governor’s office promoted a new $230 million tax cut package, saying it would help keep West Virginia the most competitive state in the region. The administration said aligning the state tax code with federal changes also expands benefits such as higher limits for childcare flexible spending accounts.

But O’Leary warned that continuing to prioritize tax cuts as the population shrinks could weaken essential services and infrastructure.

“We’re not investing in growing, we’re cutting,” he said. “Cutting is not leading to growth.”

The center’s report noted that while West Virginia’s birth rate has remained steady, its death rate has increased. An aging population and low life expectancy are driving the decline. Only eight of the state’s 55 counties have grown since 2020.

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