West Virginia shatters financial records with close of fiscal year

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West Virginia shatters financial records with close of fiscal year
"We’ve changed the image of our state to the outside world in a major way," Justice said. (Photo: Jonathan Wheeler)

West Virginia’s cumulative revenue collections for Fiscal Year 2023 would come in at $1.8 billion over estimates, shattering the all-time record for the most significant single-year revenue surplus in state history for the second year in a row.

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Gov. Jim Justice announced the breakthrough on June 30, the last day of the fiscal year, underscoring his belief that has turned a corner on a global scale.

“This is an unbelievable accomplishment and is undeniable proof that the days of West Virginia being known as poor, backward, and behind-the-times are over once and for all,” Justice said.

“West Virginia is growing, our people are employed and raising their families here, companies from all over the world are investing in us, and we’ve changed the image of our state to the outside world in a major way."

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At midnight, total collections for the historic revenue year came in at approximately $6.5 billion, 10% ahead of prior year adjusted collections, marking the first time in state history that final collections for a single year have exceeded $6 billion.

Severance tax collections set a record of nearly $950 million, a 24% increase from the prior year, with taxes from natural gas accounting for roughly 60% of total collections.

Corporation net income tax collections grew at 14% and totaled $420 million, eclipsing a record set 15 years ago in 2008.

Personal income tax collections set a new record of $2.66 billion, despite a rate reduction of 21.25% that kicked in after the West Virginia Legislature passed and Justice signed HB 2526, the largest tax cut in state history.

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Consumer sales tax reached an all-time record of $1.75 billion, growing by about 5.7% from last year, and interest income tax collections reached an all-time record of more than $132.4 million.

“All West Virginians should take a lot of pride in this historic announcement because, at the end of the day, this money belongs to them. The records we’ve shattered with the close of this fiscal year are all-time historic and will be written into the history books forevermore," Justice said.

“I’m going to work with the Legislature to take what’s left unappropriated and continue to make wise investments in what we know will bring us more goodness, like infrastructure, federal matches, and tourism, because the more we tell the world about West Virginia, the more people will want to live, work, and raise their families here.”


Summary of West Virginia records broken in FY 2023

General Revenue: $6.5 billion
Severance: Approximately $950 million
Corporate Net: Approximately $420 million
Personal Income Tax: $2.66 billion
Consumer Sales Tax: $1.75 billion
Interest Income: $132.4 million

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The Fiscal Year 2024 budget, passed by the West Virginia Legislature and signed by Gov. Justice earlier this year, appropriated $1,165,478,000 of the FY23 surplus.

By law, a percentage of the year-end surplus must be transferred to the State’s Rainy Day Fund. This year, that amount is approximately $231 million, leaving approximately $454 million unappropriated.

June 2023 total collections are expected to come in at approximately $580 million.

Additional data on FY 2023 revenue collections once all collections are certified.

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Summary of Surplus items included in FY 2024 budget

Governor’s Office - Posey Perry Emergency Food Bank Fund - $10,000,000
Department Of Education - Communities in Schools - $5,000,000
West Virginia Department Of Economic Development - $235,000,000
Division Of Natural Resources - Capital Outlay, Repairs and Equipment - $52,000,000 Division Of Natural Resources - Current Expenses - $900,000
Division Of Highways - Directed Transfer - $10,000,000
West Virginia Tourism Office - Tourism - Brand Promotion - $7,000,000
West Virginia Tourism Office - Tourism - Industry Development - $8,000,000
Governor's Office - Federal Funds/Grant Match - $282,000,000
Division Of Culture And History - Current Expenses - $2,200,000
Division Of Culture And History - Educational Enhancements - $500,000
School Building Authority - $40,000,000
Higher Education Policy Commission - Nursing Program Expansion Support - $20,000,000
Department Of Education - Jobs & Hope - $1,600,000
Department Of Agriculture - Soil Conservation Projects - $21,060,000
West Virginia Department of Economic Development - $38,000,000
General Services Division - Capital Outlay, Repairs and Equipment - $5,000,000
West Virginia Department of Economic Development - Current Expenses - $500,000
West Virginia Department of Economic Development - WV Land Stewardship Corporation - $1,500,000
West Virginia Department of Economic Development - Back Roads to Appalachia - $200,000
Governor’s Office - Civil Contingent Fund - $500,000
Department Of Homeland Security - Current Expenses - $800,000
Adjutant General - Armory Board Transfer - $3,318,000
Adjutant General - Civil Air Patrol - $1,400,000
Division Of Health - Directed Transfer - $10,000,000
Secretary Of Commerce - Jobs for WV Graduates - $1,000,000
Division Of Multimodal Transportation Facilities - Current Expenses - $1,000,000
Division Of Health - Current Expenses - $2,000,000
Secretary Of Administration - Directed Transfer - $500,000
West Virginia Schools for the Deaf and the Blind - Fire Protection - $500,000
Secretary Of Revenue - Directed Transfer - $400,000,000
General Services Division - Consolidated State Laboratory - $125,000,000
West Virginia School Of Osteopathic Medicine - $29,000,000
West Virginia University - National Cancer Institute - $50,000,000
Total: $1,165,478,000

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