CHARLESTON – After larger-than-expected tax collections in April, West Virginia’s May numbers came in just under projections.

With just one month left in the current fiscal year, the state will have a surplus, though much of those dollars are already spent.

According to information released Monday by the West Virginia Department of Revenue, fiscal year 2025 general revenue collections for May were $349.9 million, more than $154,000 under the revenue estimates set by the department. That’s a far cry from April’s tax collections of $643.8 million, which were 26.8% above the $507.8 million estimate set by revenue officials.

“Last month’s General Revenue Fund collections show that we must remain vigilant and focus on ensuring financial stability,” Gov. Patrick Morrisey said in a statement Monday afternoon. “We will continue to make fiscally responsible decisions to set up West Virginia for a prosperous future.”

Fiscal year-to-date tax collections of $4.9 billion were 5% more than the $4.7 billion revenue estimate, leaving West Virginia with $236.9 million in surplus tax collections before fiscal year 2025 ends on June 30.

While the state is expected to end the current fiscal year in the black, much of the $236.9 million surplus will have already been spent when fiscal year 2026 begins on July 1.

During the legislative session that ended April 12, the governor’s office recommended several supplemental appropriations using one-time monies through available surplus collections in the fiscal 2025 general revenue fund. Lawmakers approved more than $126.2 million in supplemental appropriations, leaving approximately $110.8 million in unappropriated surplus.

The largest of these expenditures included $39.4 million for the Department of Human Services Medical Services line item, which is the state’s Medicaid program, and $28.4 million for the Hope Scholarship educational voucher program to help fully fund the program for the upcoming fiscal year.

Another $100 million will go to the Division of Highways for road maintenance and paving projects.

The Legislature passed a bill setting the fiscal year 2026 general revenue budget at $5.318 billion. Morrisey signed it after issuing 29 line-item vetoes that reduced the budget to $5.28 billion.

Despite the April surprise of better-than-expected income tax collections, May personal income tax collections of $98.9 million were 6.5% below the $105.7 million estimate for the month. But fiscal year-to-date personal income tax collections of $1.9 billion were 5.1% above the $1.8 billion revenue estimate, providing $92.3 million in excess tax collections, making up nearly 39% of the $236.9 million year-to-date surplus.

Corporate net income tax collections were also in the red for the first time this fiscal year due to refunds, with a negative $7.8 million for May, or 175% below the $10.4 million revenue estimate. But fiscal year-to-date corporate net income tax collections of $320.8 million were 22.8% above the $261.2 million estimate, providing $59.6 million in surplus collections.

The consumer sales and use tax showed its second best month in a row, coming in at $170.9 million for May, or 4.7% above the $163.2 million revenue estimate. Fiscal year-to-date sales tax collections of $1.64 billion were 0.7% above the $1.63 billion estimate, providing just an $11.5 million surplus for the last 11 months of the current fiscal year.

May severance tax collections for coal, natural gas, and oil were $47.5 million, or 40.5% above the $33.8 million revenue estimate. Fiscal year-to-date severance tax collections of $347.1 million were just .04% below the $347.3 million revenue estimate for the current fiscal year.