CHARLESTON, W.Va. – West Virginia’s total General Revenue Fund (GRF) Collections for July were $388 million, exceeding estimates by $11 million, or 3.0%. Year-over-year, total GRF collections increased by nearly $1 million, or 0.2%, compared to July 2025.
“These results demonstrate that West Virginia is on solid financial footing because we’ve remained disciplined with taxpayer dollars,” said Governor Patrick Morrisey. “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. At the same time, modest year-over-year revenue growth is a reminder that we must continue to budget responsibly and ensure every taxpayer dollar is spent wisely.”
As of August 1, the books have officially closed on Fiscal Year 2026. With GRF collections exceeding estimates by $370 million, around $20 million in expirations, $67 million in Lottery and Excess Lottery collections over estimates, and a nominal unappropriated balance, the State had a total surplus of nearly $460 million. After funding $245 million in GRF surplus items and $38 million in Lottery and Excess Lottery surplus items from the FY 2027 Budget Bill, approximately $175 million in unappropriated surplus balances across General Revenue, Lottery, and Excess Lottery remain available to meet all the State’s needs.
Among those surplus appropriations were $125 million in funding for highways, $60 million to fully fund the Hope scholarship program, $20 million for Medicaid, $17 million for seniors, $10 million for the reclamation of abandoned and dilapidated properties, and $5 million for flood resiliency.
Personal Income Tax collections, the largest individual GRF component, were $158 million in July, exceeding the monthly estimate by $11 million, or 7.5%. Compared to last July, Personal Income Tax collections are up by $10 million, or 6.8%. Note that Personal Income Tax collections are likely to slow as the full effects of the Governor’s initiative to lower personal income tax rates by 5% fully implements.
Consumer Sales Tax collections exceeded the monthly estimate by $11 million (7.9%), with total collections for June reaching $150 million. Collections are $13 million (10.1%) above last July.
Severance Tax collections were negative $4 million in July, falling below the estimate by $13 million. The cause of negative Severance Tax collections is a combination of local coal distributions to counties and municipalities which occur each July as well as the final payment on an infrastructure bond issuance pledged using the first Severance Tax collections each fiscal year. This final payment exceeded $22 million.
Corporate Net Income Tax collections in July were $2 million below estimate (10.8%) and $8 million below last July (35.2%).
Tobacco Products Tax collections exceeded their estimate by less than $1 million in July but are nearly $2 million below the prior July. 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 $10 million in July, exceeding estimates by 17.9%. The short-term interest rate environment has remained elevated relative to expectations, leading to higher returns on the State’s short-term investments.
