Tag: Revenues

Continued Declines in W.Va. Revenues Spell More Budget Cuts

More cuts could be on the way after West Virginia started the budget year with three straight months of revenues below what state officials predicted.

The Department of Revenue announced Tuesday that the state is $81.2 million behind revenue estimates and $15 million behind prior year revenues.

Department spokeswoman Lalena Price says Revenue Secretary Bob Kiss will make recommendations in the next several weeks, likely including a continued hiring freeze and some cuts, either across-the-board, targeted or some combination.

The September totals were $32.3 million below estimates, largely due to drops in personal income and corporate net income tax revenues.

Consumer sales tax and severance tax, which has fallen due to the declining coal industry and low natural gas prices, have been problematic in previous months, but exceed estimates this month.

May Revenue Spike 'Anomaly' According to Secretary Kiss

Tax collections for the month of May were stronger than expected, according to Revenue Secretary Bob Kiss.

In a press release, Kiss said general revenue collections were up 12 percent when compared to those collected in May 2015 and some $28 million above the month’s estimates.

But Kiss said the collections are an anomaly and not a sign that the state’s revenues are bouncing back from a long trend of decline. He attributed the increase in funds to measures taken this year by the governor and the Legislature.

In October, Gov. Earl Ray Tomblin announced mid-year cuts for state agencies of some 4 percent to reduce expenditures.

During both the regular and special sessions, lawmakers approved bills to divert some tax collections from special accounts to the general revenue fund and pull money from the Rainy Day Fund and other one-time accounts to pay the state’s bills through the end of the fiscal year on June 30.

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