West Virginia

West Virginia

Budget Links

FY2026 (proposed)
FY2025 (enacted)
FY2024 (enacted)
FY2023 (enacted)
FY2022 (enacted)
FY2021 (enacted)

Proposed Budget - Fiscal Year 2026

On February 12, West Virginia Governor Patrick Morrisey released a budget for fiscal 2026 that proposes spending $5.3 billion in general revenue funds. This is a decrease of 7.5 percent from the fiscal 2025 budgeted amount of $5.8 billion. The all funds budget totals $38.4 billion in fiscal 2026, a decrease of 4.8 percent compared to the budgeted fiscal 2025 amount. The general revenue fund estimate for fiscal 2026 is $5.3 billion, an increase of 1.1 percent over the fiscal 2025 estimate. As of December 31, 2024, the balance in the Rainy Day fund – Part A was $735.3 million (12.8 percent of fiscal 2025 appropriations to date) and the balance in the Rainy Day Fund – Part B was $579.8 million (10.1 percent of fiscal 2025 appropriations to date). From the appropriated funding sources, the largest categories of spending are human services (36.6 percent), education (19.9 percent), transportation (10.8 percent), homeland security (4.6 percent), and revenue (3.6 percent). 

Proposed Budget Highlights 

The theme for fiscal 2026 is the Mountain State Comeback Budget, a balanced budget which represents a down payment on a multi-year plan to solve the state’s financial challenges. The governor prioritized fiscal responsibility, noting his budget will not propose new ongoing programs without new ongoing revenue.

Closing the Budget Gap

• The budget closes an estimated budget gap of $397 million for fiscal 2026. This is accomplished through revenue adjustments along with utilizing surplus and unappropriated funds and one-time expenditure adjustments.
• The budget also uses targeted cuts to departments and agencies totaling $109 million while avoiding across-the-board reductions.
• The budget does not use dollars from the Rainy Day Fund to close the budget gap.
  

Fully Funding Programs

• Fully funds programs including Medicaid, social services, corrections and the school aid formula.
• Provides 100 percent of the required annual funding for the state’s share of retirement contributions and fully funds the Public Employees Insurance Agency.
• Fully funds the Hope Scholarship for fiscal 2026.
• The scholarship allows parents the option to use an equivalent portion of the per-pupil expenditure from the School Aid Formula for their children for eligible educational expenses, including private or religious school tuition or home school. 
  

Consolidating Departments

• Consolidates several state departments including the Department of Commerce with the Department of Economic Development, the Department of Tourism with the Department of Arts, Culture and History, and the Department of Homeland Security with the West Virginia National Guard.

Selected Budgetary Adjustments

• Increases funding for Emergency Management.
• Allocates additional funding for Justice and Community Services and Juvenile Services.
• Increases funding for foster care, adult protective services case workers and youth services case workers. 
• Allocates additional funds for the state’s Birth to Three program and Center for Local Health.
  

State of the State Speech Initiatives

• Increasing the use of coal and gas, utilizing water resources, and developing nuclear-powered Small Modular Reactors.
• Strategic investments to train high-skilled energy workers through the West Virginia POWER Tech Center. This will be a first-of-its kind collaboration among several educational institutions to help the state become an innovative supplier of energy to the growing technology industry.
• Adopt regulatory and tax policies to make West Virginia the most dynamic and friendly state in the country for data, super intelligence, and cryptocurrency facilities. 
• Increase competitiveness in site selection for businesses, improve workforce participation, and expand broadband connectivity.

Proposed Budget Information
Fiscal Year 2026 Budget Proposal

Budget Report

Operating Detail

State of the State Address

Press Clip