Gov. Earl Ray Tomblin says the state will need to take $9.1 million less from reserves for the upcoming budget.
In a news release Monday, the Democrat said the state has seen growth in local property taxes that will decrease the state's share of school aid funding.
It's the second time the governor has reduced the amount he expects the state to use from the Rainy Day Fund.
Originally, he called for $69 million from reserves.
In January, he said only $25 million would be needed after better-than-expected investment returns.