CHARLESTON, W.Va. — Following a strong January, West Virginia heads into the final five months of the fiscal year with year-to-date revenue collections at $173 million above estimates.
Gov. Jim Justice announced Monday January collections were $46.6 million ahead of estimates.
“The economics of our state continue to work,” Justice said. “If the economics don’t work then everything we’re trying to do for you make it impossible to do.”
Information released from the state Senate Finance Committee show personal income tax collections were $26.5 million better than expected in January. Severance taxes were $8.2 million above estimates while consumer sales tax collections had a modest gain of nearly $221,000. Tobacco tax collections were below estimate for the month.
Justice said Monday the state is in a strong position when it comes to cash flow. He said the $173 million revenue collection surplus doesn’t include $200 million the state has from income tax collections that were collected on July 15, 2020 instead of April 15, 2020 because of the pandemic.
“I hope to goodness we will absolutely continue to drive ahead in every way,” Justice said. “We have a cash surplus in this state right now that is extremely healthy.”
Justice said the state has made the right financial decisions during the pandemic including using a large portion of the CARES Act money to replenish the state’s unemployment compensation fund.
“We took care of the CARES money the way we should have taken care of it. Literally from the standpoint of protecting our businesses from gigantic unemployment rates jacked up,” Justice said. “West Virginia is poised for growth and diversification.”
The revenue surplus will likely play a role in the upcoming 60-day legislative session that begins Feb. 10. Justice will give his State of the State Address that night.