West Virginia’s most recent monthly state revenue report was about on target with projections, but state officials are continuing to watch outside factors at the national level.
“Overall, we’re quite pleased with where we are,” state Revenue Secretary Eric Nelson said on MetroNews Talkline.
“Still always, as you’ve heard me say in the past — quite cautious of where we are going forward, especially with what’s going on in D.C.”
The state collected $349.9 million in general revenue in May. Officials had estimated that the state would bring in $350 million.
So the difference meant being about $154,000 below the projections.
The amount the state brought in for May was 12% below the amount brought in the prior year.
So far during this fiscal year, total state revenue collections about $4.94 billion are nearly $236.9 million above estimate and 3.1% below prior year collections.
“I think we’re very pleased with where we are right now,” Nelson said.
The monthly figures were boosted by bringing i $13.7 million more in severance tax than anticipated and a $7.7 million more in monthly sales tax collections.
Those gains were offset by monthly shortfalls in personal income tax and corporation net income tax.
“You know, these last couple of months, it’s tax season, so we’ve had a lot of fluctuations as it relates to the collections of taxes as well as refunds,” Nelson said. “And so this month, the month of May, we saw a greater number of refunds.”
Nelson suggested that June’s financial numbers appear to be on track to remain steady. He did say the state should be ready for shifts at the federal level. Some factors include the tariffs that continue to affect trade as well as elements of the major reconciliation bill now being considered in the U.S. Senate.
“So we should be north of, hopefully, that $200 million estimate in surplus at year end, which is very positive as we go into ’26 and some of the unknown challenges that we have,” Nelson said.
“Especially the unknowns with the tariffs, the unknowns in D.C. with this budget bill and the effects on Medicaid, SNAP and even economic development grants. So it’s a big caution flag that will continue to put up, and we’ll continue to watch closely.”
State Treasurer Larry Pack said the state’s finances are solid. Pack was the state revenue secretary when the current budget was put together.
“We felt like we’d have about $200 million surplus when we presented it to the legislature. So it’s kind of staying on track,” Pack said on Radio Roundtable on WAJR in Beckley.
Pack said he is also watching national factors.
Generally what happens with West Virginia is, when there’s some sort of national happening, economic happening, we’re generally slow. It’s slower to impact us, to come to us,” he said.
“I think we’re a little concerned about some of this, but as you saw, the stock market went way down and so it came back up to where it was. So the tariffs is, you know, kind of changing. So until all this settles out, we’re not really going to know exactly how it’s going to impact West Virginia.”