Saturday, July 20, 2024

‘Conclusion of Interim Finance Committee Report’


West Virginia’s Deputy Secretary of the Department of Revenue, Mark Muchow, provided an in-depth overview of the state’s finances to members of the Joint Standing Committee on Finance during April’s interim meetings. Starting with the General Revenue Fund, Muchow highlighted a significant success in March, with the state collecting 7.4 million – nearly million above the estimate.

Year-to-date, West Virginia has collected .068 billion in general revenue, surpassing the projected estimate by 2.9 million. However, despite exceeding expectations, general revenue is still down by 11.8 percent compared to the previous year. This decline can be attributed to the 21.25 percent reduction in personal income tax and a decrease in severance tax collections to more normal levels this year.

Sales tax collections totaled 7.2 million in March, bringing the year-to-date total to .315 billion. Personal income tax collections reached 8.3 million in March, with a year-to-date total of .635 billion. Meanwhile, severance tax collections for March were .2 million, totaling 7.5 million year-to-date.

Muchow highlighted the fluctuations in revenue estimates for the general road fund, emphasizing the impact of federal reimbursement. While March’s overall collections, including federal reimbursement, fell short of the estimate at 9.1 million, this was mostly due to a substantial upward revision in the Department of Transportation’s federal funds estimate.

Federal funds received by West Virginia in March amounted to .5 million, a decrease from .2 million last year. However, year-to-date, the state has received nearly 7 million in federal funds, marking a 19.4 percent increase from the previous year.

Despite some fluctuations, Muchow remains optimistic about the state’s financial outlook, noting that West Virginia is on track for a record year in federal reimbursement. Additionally, motor fuel tax collections reached .8 million in March, registration fees totaled .9 million, and motor vehicle sales taxes came in at .6 million.

Overall, Muchow’s detailed analysis provides valuable insights into West Virginia’s current financial standing and sets the stage for informed decision-making moving forward.

Read more

Local News