West Virginia breaks revenue surplus record for April

May 2—West Virginia broke a record in April, hitting a revenue surplus $319 million above estimates, the most increase in one month in state history.

Gov. Jim Justice made the announcement during a virtual press briefing Monday, saying the revenue numbers have "surpassed all of our wildest imaginations."

The $319 million surplus is the "single, hands-down largest collection in our history (for one month)," he said, pushing the year-to-date revenue surplus to $1.58 billion.

Justice said that means the state is on track to surpass the estimated $1.7 billion surplus for the fiscal year, which ends on June 30, leaving two more months of surplus to include in the total.

Secretary of Revenue Dave Hardy also spoke during the briefing, saying the revenue sources for the state, including the personal income, sales and severance taxes, as well as the corporate net income tax were all up, a trend shown all year.

Just the severance tax (for coal and gas) is up $622.5 million so far this fiscal year, he said.

Hardy said when he was told last fall that projections for this fiscal ear showed a possible $1.7 billion surplus he was "skeptical."

"Now, we are two months out (from the end of this fiscal year) and we are at $1.585 billion," he said. "So I think it's fair to say we are just going to blow right through that $1.7 billion number. We are now way past what we did in fiscal year 2022 (in revenue surplus), which was $1.3 billion."

Hardy said people pay their personal income taxes for the year in April and collections were up $192 million above estimates, despite a 21.25 percent reduction in that tax, which was retroactive to Jan. 1.

"We still broke an all-time record," he added.

"When you really look at these numbers, you see a very healthy West Virginia economy with people working and people making higher wages," Hardy said. "I am proud to be part of the Governor's leadership team that is making the kind of history that we are making. This is great news for West Virginia, and we are really looking forward to running across that finish line on that final day of the fiscal year ... We are making history here."

"Today is a day of incredible celebration for me," Justice said. "Everybody is doing great work. It is a day of celebration, happiness and pride."

He said he is proud of the state's financial health, "but I am also incredibly proud of the hardworking West Virginians who helped put us in this financial position. It's an honor to be able to make announcements like this because West Virginia has truly turned bankruptcy into prosperity. All West Virginians should carry with them a sense of pride, because our state is on the move and the envy of the world."

— Contact Charles Boothe at cboothe@bdtonline.com

Contact Charles Boothe at cboothe@bdtonline.com