The Joint Committee on Finance met this morning to hear updates from the Department of Revenue and the Department of Transportation.
Year-to-date general revenue collection totals $1.8 billion, $54 million over the estimate. National trends include higher inflation, slowing wage growth, and rising interest rates. Interest rate increases are expected in December and in the first quarter of 2027. Year-to-date general revenue collections are all above estimate, except for corporate next income tax, which is nearly 7 percent below estimate. This is due to October refunds. The severance tax revenue didn’t do well in October but is 7 percent above estimate for the year.
Year-to-date state road fund collections total $791.1 million, $14.5 million over estimate. The only categories not showing increases are the federal reimbursement and the motor fuel tax. Reimbursements are low because the federal government is only a year into its new fiscal year. Motor fuel taxes may be low due to high gas prices and people limiting travel.
The Department of Transportation update included an update on HB 5178 – VRS Program, which allows dealers to verify active insurance at the time of sale and registration, uses established DMV systems and processes, and integrates into a newly developed dealer platform. This method provides cost savings and a streamlined solution.
Currently, there is no immediate plan to close any WV DMV regional office. However, the department recognizes that how citizens interact with government services has changed, leading to an expansion of online services.
The department provided a review of its actual and estimated revenue. Currently, federal reimbursements are below normal, again related to the start of the federal fiscal year and a large federal transportation bill that was set to sunset in September. The bill has been continued until December, which allows only 1/12 payback monthly. Emergency Response funding totals $57.5 million, with $ 11.5 million billed to FEMA/FHWA so far and $716,000 used from the state road fund, as it is not eligible for reimbursement.
