2024-04-02 04:47:55
CHARLESTON — With just three months remaining in fiscal year 2024 ending on June 30, West Virginia is poised to come close to an $800 million tax revenue surplus as a possible special session waits in the wings to amend the budget for the next fiscal year.
According to a monthly report published by the state Senate Finance Committee, West Virginia ended the month of March with $487.4 million in tax collections for the fiscal year 2024, which was 24.6% more than the $392.6 million estimate from the state Department of Revenue. Surplus tax revenue for March was $94.9 million.
Fiscal year-to-date tax collections between July 2023 and March of $4.1 billion was 14.5% more than the $3.5 billion revenue estimate, providing the state with $522.9 million in surplus tax collections. State revenue officials and still expect the state to end the fiscal year just short of $800 million in tax revenue surplus.
“West Virginia’s fiscal resilience continues to shine with March’s incredible revenue surplus,” said Gov. Jim Justice in a statement Monday. “With our cumulative collections now standing at $522 million ahead of estimates with three months remaining in the fiscal year, West Virginia is well-positioned for a strong finish despite the small monthly downtick in February.”
Tax collections for personal income and consumer sales came in modestly above estimates, while severance tax collections for coal and natural gas had a strong showing for the month.
The state collected $198.3 million in personal income taxes in March, or 32.6% more than yhe $149.5 million estimate for a $48.8 million surplus for the month. Fiscal year-to-date personal income tax collections of $1.6 billion was 12.7% more than the $1.5 billion estimate, providing the state $183.9 million in surplus — or 35% of the total available surplus since July.
March consumer sales and use tax revenue was $147.2 million, or 3.9% more than the $141.6 million revenue estimate for a $5.5 million surplus. Fiscal year-to-date sales tax revenue was $1.3 billion, or 1.8% more than the $1.2 billion revenue estimate with surplus revenue at $23.7 million.
Severance tax revenue for March was $48.2 million, or 117.9% more than the $21.1 million estimate for the month, providing the state a $26 million surplus. Fiscal year-to-date severance tax collections of $247.5 million was 11.4% more than the $222.3 million estimate, resulting in a $25.2 million surplus.
The state also continues to see positive revenues from the corporate net income tax. March corporate net income tax revenue was $15.4 million, which was 80.9% more than the $8.5 million estimate, resulting in a $6.9 million surplus. Fiscal year-to-date corporate net income tax collections of $259 million was 103% more than the $127.6 million estimate, providing the state a $131.4 million surplus.
The West Virginia Legislature passed Senate Bill 200 during the 2024 session that ended on March 9, setting the general revenue budget for fiscal year 2025 beginning June 30 at $4.996 billion. While lawmakers traditionally include a section in the budget bill to fund certain items from available surplus dollars at the beginning of the new fiscal year, the Legislature passed a “skinny” budget.
Justice and the Legislature are awaiting word from the U.S. Department of Education regarding a waiver from required total education spending rules to remain eligible for remaining federal COVID-19 funding the state received between 2020 and 2021. While department officials expect to grant the state’s waiver request, a denial would mean the state having to spend $465 million — likely from available surplus tax dollars — on education in the state.
Justice and lawmakers are weighing a special session, likely in May, to make changes to the budget bill once the state receives the waiver. Justice also wants lawmakers to restore cuts made to several line items, including a $147 million cut to Medicaid
“My commitment to responsible financial management and wise use of our surplus dollars remains unwavering, because we’ve shown time and time once more that when we put West Virginians first, and prioritize their needs and wants, it propels our rocket ship higher and farther,” Justice said. “As we continue to climb, I will keep steering the ship with care, ensuring that every move boosts us towards a future where all West Virginians can reach for the stars.”
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