West Virginia

West Virginia

Budget Cycle
Annual

Governor Submits Budget
January (2nd Wednesday)

Fiscal Year Begins
July 1
 
Governor Signs Budget 
5 days after legislative passage

Budget Links

FY2027 (enacted)
FY2027 (proposed)
FY2026 (enacted)
FY2025 (enacted)
FY2024 (enacted)
FY2023 (enacted)
FY2022 (enacted)

Enacted Budget – Fiscal Year 2027

West Virginia Governor Patrick Morrisey signed the fiscal 2027 budget on March 12 with 12 objections. General revenue appropriations in the bill prior to the objections totaled $5.5 billion, an increase of $269.98 million, or 5.2 percent, over the fiscal 2026 general revenue enrolled budget. The general revenue fund estimate for fiscal 2027 (as noted in the fiscal 2027 Budget Report) is $5.5 billion, an increase of 3.2 percent over fiscal 2026. 

The budget signed by the governor delivers several priorities championed by the administration aimed at strengthening the state’s long-term economic growth and community resilience. Prioritizing education, the budget fully funds the HOPE Scholarship program, fully funds the state’s higher education funding formula for the first time, and awards funds to support West Virginia’s medical education institutions. The budget directs additional funding dedicated to improving West Virginia roads and continues legislative process toward enacting an income tax cut. For the first time, the state’s Flood Resiliency Trust Fund will receive dedicated funding through an investment included in the final budget to strengthen flood preparedness, improve disaster mitigation efforts, and support long-term infrastructure projects designed to better protect communities. The budget allocates additional funding to the Mountain State Digital Literacy Program to help ensure residents gain the digital skills needed to participate in today’s economy, while also directing funding to the Infrastructure and Jobs Development Council for water and sewer improvements. To assist communities in removing abandoned and unsafe structures, the budget allocates funding to the Dilapidated Properties Program. The budget includes funding to provide a three percent pay increase for state employees, including teachers, highway workers, and law enforcement officers and limits increases in the Public Employees Insurance Agency (PEIA) program to three percent.


Proposed Budget - Fiscal Year 2027

On January 14, West Virginia Governor Patrick Morrisey released a budget for fiscal 2027 that proposes spending $5.5 billion in general revenue funds. This is an increase of $84.1 million, or 1.6 percent, over the fiscal 2026 budgeted amount. Total expenditures in the proposed budget are $40.9 billion in fiscal 2027, a decrease of $3.2 billion, or -7.3 percent, over the fiscal 2026 budgeted total. The general revenue fund estimate for fiscal 2027 is $5.5 billion, an increase of 3.2 percent over the fiscal 2026 estimate. The estimated unappropriated balance in the general revenue fund at the end of fiscal 2027 is $0. As of December 31, 2025, the balance in the Rainy Day fund – Part A was $788.7 million (14.6 percent of fiscal 2026 appropriations to date) and the balance in the Rainy Day Fund – Part B was $633.0 million (11.7 percent of fiscal 2026 appropriations to date). From the total expenditures of appropriated funding sources, the largest categories of spending are human services (40.6 percent), education (18.5 percent), transportation (10.2 percent), homeland security (3.7 percent), and revenue (3.3 percent).

Proposed Budget Highlights 

The governor’s proposed budget for fiscal 2027 prioritizes fiscal responsibility to best prepare the state for future years while investing in education, foster care, higher education, and state employees and teachers. The state’s rainy day funds provide a solid financial cushion. 

Tax Policy Changes

  • General revenue budget incorporates changes from conforming to federal tax laws, primarily related to provisions in the One Big Beautiful Bill Act (OBBBA).
  • General revenue budget contemplates a 5 percent cut in personal income tax rates retroactive to January 1 and the governor encourages the legislature to work with him on finding an additional 5 percent cut. 

Program Funding

  • Funds 100 percent of the state’s required retirement contributions.
  • Fully funds the state school aid formula, Medicaid, social services, and correctional programs.
  • Recommends no transfer from the Rainy Day Fund.
  • Minimizes expenditure growth and positions the state to structurally balance budgets in out years. 

Selected Budgetary Adjustments

  • Provides funding for a 3 percent pay raise for state employees, teachers, and service workers.
  • Adds funding for a 3 percent increase for the employer’s share of the Public Employees Insurance Agency.
  • Recommends surplus appropriations during fiscal 2027 from any remaining surplus balances at the close of fiscal 2026.
  • Provides additional funds for the HOPE Scholarship Program. 
  • Adds funding for the Intellectual and Developmental Disabilities (I/DD) waiver; the increased base funding will eliminate half of the wait list.
  • Allocates funds for contracts and diversions at state-owned health care facilities.
  • Proposes additional funds to cover the increased state portion of SNAP administrative costs.
  • Increases funding for the higher education funding formula.

State of the State Speech Initiatives

  • Called for the establishment of the Bring Them Home Fund, to bring children in foster care who have been sent out of state to receive care back to West Virginia. With additional investments, the state can rehabilitate existing state facilities, transform them into world-class centers of care, and begin bringing children back home.
  • Proposed school-within-a-school programs for at-risk students, providing immersive, project-based learning with a strong focus on STEM and real-world skills.
  • Launched a new pilot initiative called SENTRY to modernize how West Virginia detects flood risk and warns the public. The initiative would expand sensors in key areas to build predictive models and react to leading indicators instead of lagging indicators. 
  • Highlighted the “50 by 50” plan, an initiative to more than triple the state’s power generation by 2050 by prioritizing reliable baseload power through coal, natural gas, and nuclear, while supporting all major energy sources.