Gov. Justice announces $20.4M revenue surplus for October; West Virginia records $298M cash balance through first four months of fiscal year

10/30/2020

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CHARLESTON, WV – Gov. Jim Justice announced today that West Virginia’s revenue collections are set to come in at $20.4 million above estimates when the books officially close on the month of October this weekend.

West Virginia has now banked surpluses in each of the first four months of Fiscal Year 2021, over which time the state has also accumulated a cash balance of $298 million.

“West Virginia is kicking butt across the board,” Gov. Justice said. “The surpluses that we’re seeing are amazing and they are going to enable us to keep doing more and more goodness for our schools, our roads, and so much more for all West Virginians.
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“We’re surpassing all-time highs. We’re recording surplus after surplus on estimates that have been based on the biggest year of growth in state history, and we’re doing it even with the curveball that we’ve been thrown with this pandemic,” Gov. Justice continued. “I could not possibly be any happier and West Virignians everywhere should be super proud.” 

In a virtual briefing to update West Virginians on state revenue numbers, Gov. Justice reported that year-to-date general revenue collections are $110.8 million above estimates and 9.7% above prior year receipts.
Gov. Justice also highlighted that West Virginia has accumulated a $298 million cash surplus through the first four months of FY2021. For comparison, the cash flow at the end of October last year was approximately $120 million, nearly 2.5 times less than the cash surplus recorded so far this year, despite the effects that the COVID-19 pandemic has had on the state’s economy.
“I congratulate all of you out there who are part of the engine making us go,” Gov. Justice said. “From our businesses, to the people of West Virginia, we thank you so much. You’re doing really great work.

“We’re truly on the move,” Gov. Justice continued. “Now what we want to do is take this positive momentum and go with it.”

The Governor was joined by Revenue Secretary Dave Hardy, who also expressed excitement over the state’s fiscal accomplishments.
“As we sit here today, one-third of the way through the fiscal year, we could not be happier with these numbers,” Sec. Hardy said. “I’m happy that the people of West Virginia have had the benefit of Governor Justice’s leadership, and the good fortune that we’ve had from that leadership puts us in the position we’re in today.”

Total General Revenue Fund collections for the month of October were $354.9 million. Year-to-date collections have totaled $1.594 billion.
October General Revenue Fund Collection Highlights:
  • October General Revenue Fund collections of roughly $354.9 million were $20.4 million above estimate and slightly above prior year collections for the month.
  • Year-to-date collections of roughly $1.594 billion were roughly $110.8 million above estimate and 9.7% above prior year receipts.
  • Cumulative collections were roughly $141.5 million above prior year receipts.
  • The cash balance was $298 million yesterday.
  • It was $120 million on the same date one year ago.
A summary by major component follows:
  • Consumer sales tax collections rose by roughly 6.0% in October, as monthly collections of $107.2 million were $3.8 million above estimate. Cumulative collections of $457.9 million were $19.0 million above estimate and 6.1% above prior year receipts.
  • Personal income tax collections totaled roughly $159 million in October. Collections were roughly $8 million above the monthly estimate. Cumulative personal income tax collections were $30.4 million above estimate and 17% ahead of last year.
  • Corporation net income tax collections totaled $10.5 million in October. Collections were $5.5 million above estimate. Cumulative collections totaled nearly $116.3 million as compared with $63.9 million in the prior year. Year-to-date receipts were $48.8 million above estimate.
  • October severance tax collections totaled nearly $10.6 million and cumulative collections totaled $33.2 million. Collections for the year-to-date were $12.2 million above estimate.
  • Insurance Premium Tax collections totaled $30.1 million in October and cumulative collections totaled roughly $57.9 million. Cumulative collections were 4.5% below prior year receipts partially due to lower auto insurance premiums associated with less road traffic.
  • Cumulative interest income collections of more than $6.0 million were $1.2 million above estimate and just 44.6% below prior year receipts despite significantly lower interest rates this year.

Contact Information

Jordan Damron, jordan.l.damron@wv.gov

Contact

Office of the Governor
State Capitol, 1900 Kanawha Blvd. E
Charleston, WV 25305

Office Phone:
304.558.2000 or 1.888.438.2731

Governor's Mansion:
304.558.3588

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