CHARLESTON, WV (LOOTPRESS) – West Virginia closed the books on Fiscal Year 2025 with a $338.5 million year-end surplus, according to a release from Governor Patrick Morrisey’s office.
The surplus includes a $254.8 million surplus from General Revenue Fund collections, $49.2 million from prior-year surpluses and unappropriated balances, and $34.2 million in year-end General Revenue Fund appropriation expirations.
The administration said the expiration total significantly exceeds the state’s 16-year average and credited the outcome to what it called the governor’s “responsible fiscal management.”
Officials said the surplus was also influenced by over $110 million in spending that was vetoed by the governor from the Fiscal Year 2026 budget in an effort to maintain adequate reserve funds.
A portion of the surplus has already been earmarked for specific uses.
One example is $100 million designated for secondary road maintenance, which was approved by the legislature and allowed to take effect by the governor.
“The difficult decisions I made when I proposed a fiscally conservative 2026 budget, the vetoes I executed in the final 2026 budget bill, and the direction I gave my Cabinet on Day 1 to find efficiencies within their departments have helped produce the results we see today,” said Governor Morrisey.
“I am pleased that the decisions we’ve made these past six months are allowing the State to start the new Fiscal Year in such a strong financial position.”
Despite the positive report, state officials cautioned that challenges remain for Fiscal Year 2027.
These include a projected $35 million increase in Public Employees Insurance Agency (PEIA) costs, as well as up to $200 million in additional funding required for the Hope Scholarship and other programs.
Additional financial pressures could also arise from federal legislation.
“The good news is that our early decisions have positioned West Virginia to face those challenges head on,” Morrisey added.
“We will be ready for what’s ahead and once we get our fiscal house in order for the next few years, we will be looking for new tax cuts to help our state better compete with other states that we touch.”
