CHARLESTON, W.Va. — The state missed revenue estimates by nearly $14 million in January.
The numbers, released Monday, show overall tax collections of $477.9 million were $13.8 million below where the administration of former Gov. Jim Justice said they would be for the month.
Revenue collections are $27.9 million ahead of estimates seven months into the fiscal year.
Gov. Patrick Morrisey has raised concerns since taking office about a possible $400 million budget deficit for next fiscal year. Morrisey said last week several things were contributing to the shortfall including costs for Medicaid, education and the insurance program for public employees. He also said the state had instituted tax cuts beyond its means, although he underscored that he supports cuts enacted strategically.
“Now, it’s important that when you talk about the budget, we’re talking about what we inherited,” Morrisey said last week, adding that the big number doesn’t factor in any new spending priorities, any additional tax cut or new resources for addressing some of West Virginia’s spending challenges.
“This is what we’ve inherited. This is where we are, day one of the new administration.”
January’s collection numbers include a collection deficit of $28 million in Severance Tax revenues while collections for the Personal Income Tax missed estimates by $2.9 million. The Tobacco Tax also missed estimates by $2.1 million.
Revenues for the Consumer Sales Tax exceeded estimates by $2.9 million.
The difficult January followed positive collections numbers, $37.5 million above estimates, for December. Former Revenue Secretary said the increase was attributed to the state performing better in the Personal Income Tax category.
After seven months of the fiscal year, Personal Income Tax collections have missed estimates by $16.6 million and Severance Tax collections are nearly $60 million below estimates with five months left in the current budget year.
Morrisey met with House of Delegates Speaker Roger Hanshaw and state Senate President Randy Smith last week about the budget.
“We have some tough challenges ahead, but all of us are ready to accept that challenge and do very big things for the state,” Morrisey said.