in West Virginia

Fiscal Budgets West Virginia state budget and finances Tax policy in West Virginia Finance Financial regulation in West Virginia Pensions Public pensions in West Virginia Pension health in West Virginia Civil liberties Affirmative action in West Virginia Campaign finance requirements in West Virginia Campaign finance requirements for West Virginia ballot measures Nonprofit regulation in West Virginia Education Charter schools in West Virginia Higher education in West Virginia Public education in West Virginia School choice in West Virginia Elections Ballot access Ballot access requirements for political candidates in West Virginia Ballot access requirements for political parties in West Virginia Political parties in West Virginia Ballot access requirements for presidential candidates in West Virginia Redistricting in West Virginia Voting in West Virginia Energy and Environment Energy policy in West Virginia Fracking in West Virginia Oil and gas extraction on federal land in West Virginia Endangered species in West Virginia Environmental policy in West Virginia Healthcare Healthcare policy in West Virginia Medicaid spending in West Virginia Effect of the Affordable Care Act in West Virginia Immigration Immigration in West Virginia

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The historical West Virginia budget and finance information below applies to years prior to the most current fiscal year. With the exception of the tab labeled "Prior fiscal year budgets," the tabs below display information, from several different fiscal years, as it was presented on Ballotpedia in prior calendar years. For more current information regarding West Virginia's budget and finances, click here.

As published 2016[edit]

West Virginia budget and finances

General information

Budget calendar: Annual

Fiscal year: 2017

State credit rating: AA (as of 2014)

Current governor: Earl Ray Tomblin

Financial figures

Total spending (state and federal funds): $23.4 billion (estimated for 2015)

Per capita spending: $12,697.60 (estimated for 2015)

Total state tax collections: $5.4 billion (2014)

Per capita tax collections: $2,910.04 (2014)

State debt: $25 billion (as of 2014)

Per capita state debt: $13,459 (as of 2014)

State budget and finance pages • Total state expenditures • State debt • Tax policy in West Virginia

In West Virginia, as in other states, lawmakers and public officials are elected in part to manage the state's finances. This includes generating revenues (money coming into the state from various sources) and approving expenditures (the money spent on governmental functions and servicing state debt). State budgets are complex and fluid, as they depend on anticipated revenues and planned expenditures, which may alter over the course of a fiscal year. If revenues do not keep pace with expenditures, states generally have to raise taxes, cut services, borrow money, or a combination of the three. State budget decisions are also influenced by policy decisions at the national level, such as the Affordable Care Act or energy and environmental regulations, and issues at the local level, such as crime and the quality of education.

The West Virginia state budget and financial data presented here come from different years because the states and the federal government report and publish the information at different times.

Definitions[edit]

The following terms are used to describe a state's finances:

• Revenues come mainly from tax collections, licensing fees, federal aid, and returns on investments.
• Expenditures generally include spending on government salaries, infrastructure, education, public pensions, public assistance, corrections, Medicaid, and transportation.
• State debt refers to the money borrowed to make up for a deficit when revenues do not cover spending.
• The state credit rating is the grade given by a credit rating agency based on the general financial health of the state's government and economy.
• State funds include general and other state-based funds. A general fund is "the predominant fund for financing a state's operations." Other state funds are "restricted by law for particular governmental functions or activities."^[4]
• Federal funds are "funds received directly from the federal government."^[4]
• Total spending is calculated by adding together the totals for state and federal funds used for expenditures.

Revenues[edit]

2014 revenues[edit]

See also: State government tax collections by source

The table below breaks down state government tax collections by source in 2014 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "2013 population" and "Per capita collections" are rendered in thousands of dollars (for example, $2,448 translates to $2,448,000). Figures in the columns labeled "2013 population" and "Per capita collections" have not been abbreviated.^[5]

Compared to neighboring states, West Virginia had the highest state tax collections per capita, at $2,910.

State tax collections by source ($ in thousands), 2014
State	Property taxes	Sales and gross receipts	Licenses	Income taxes	Other taxes	Total	2013 population	Per capita collections
West Virginia	$0	$2,560,993	$152,754	$1,973,974	$692,216	$5,379,937	1,848,751	$2,910
Kentucky	$562,370	$5,354,124	$472,225	$4,423,722	$291,104	$11,103,545	4,412,617	$2,516
North Carolina	N/A	$9,978,484	$1,600,058	$11,751,148	$67,061	$23,396,751	9,940,387	$2,354
Tennessee	N/A	$8,758,085	$1,335,392	$1,416,190	$296,662	$11,806,329	6,547,779	$1,803
Virginia	$35,561	$6,063,182	$795,515	$11,618,200	$436,814	$18,949,272	8,328,098	$2,275
United States	$14,232,835	$411,414,175	$51,120,024	$357,104,785	$31,880,270	$865,752,089	318,907,401	$2,715
Source: U.S. Census Bureau, "2014 annual survey of state government tax collections by category," accessed April 4, 2016

The table below lists 2014 tax collections by source as percentages of total collections. About 47.6 percent of West Virginia's total state tax collections came from sales taxes and gross receipts.^[5]

State tax collections by source (as percentages), 2014
State	Property taxes	Sales and gross receipts	Licenses	Income taxes	Other taxes
West Virginia	0.0%	47.6%	2.8%	36.7%	12.9%
Kentucky	5.1%	48.2%	4.3%	39.8%	2.6%
North Carolina	N/A	42.6%	6.8%	50.2%	0.3%
Tennessee	N/A	74.2%	11.3%	12.0%	2.5%
Virginia	0.2%	32.0%	4.2%	61.3%	2.3%
Source: U.S. Census Bureau, "2014 annual survey of state government tax collections by category," accessed April 4, 2016

Federal aid to the state budget[edit]

See also: Federal aid to state budgets

State governments receive aid from the federal government to fund a variety of joint programs, mainly in the form of grants for such things as Medicaid, education, and transportation. In 2013 federal aid to the states accounted for roughly 30 percent of all state general revenues. Federal aid varies from state to state. For example, Mississippi received approximately $7.5 billion in federal aid in 2013, accounting for about 43 percent of the state's general revenues, the highest percentage of all of the states. By contrast, North Dakota received about $1.5 billion in federal aid in 2013, or just 19 percent of the state's general revenues, the lowest percentage in the nation.^[6]

The table below notes what share of West Virginia’s general revenues came from the federal government in 2013. That year, West Virginia received approximately $4.2 billion in federal aid, 34.1 percent of the state's total general revenues. Taking into consideration the state's 2013 population, this came out to about $2,282 in federal aid per capita. Figures from surrounding states are provided for additional context.^[7]

Federal aid to state budgets, 2013
State	Total federal aid ($ in thousands)	Federal aid as a % of general revenues	Ranking (by % of general revenues)	Est. 2013 population	Aid per capita
West Virginia	$4,230,663	34.1%	16	1,854,304	$2,282
Kentucky	$8,047,093	35.1%	12	4,395,295	$1,831
North Carolina	$15,470,808	32.5%	25	9,848,060	$1,571
Tennessee	$10,819,977	39.5%	3	6,495,978	$1,666
Virginia	$9,412,343	22.9%	47	8,260,405	$1,139
Sources: United States Census Bureau, "State Government Finances: 2013," accessed April 4, 2016 United States Census Bureau, "State totals: Vintage 2013," accessed April 8, 2016 Note: Per-capita figures were generated by Ballotpedia by dividing total federal aid for the state by the estimated population of that state in 2013.

Spending[edit]

Estimated 2015 expenditures[edit]

See also: Total state expenditures

The table below breaks down estimated spending totals for fiscal year 2015 (comparable figures from surrounding states are included to provide additional context). Figures for all columns except "Population” and “Per capita spending" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the columns labeled "Population” and “Per capita spending" have not been abbreviated.^[2]

West Virginia's total estimated government spending in fiscal year 2015 was $23.4 billion, which was the lowest amount when compared to surrounding states.

Total estimated state spending, FY 2015 ($ in millions)
State	State funds	Federal funds	Total spending	Population	Per capita spending
West Virginia	$19,044	$4,372	$23,416	1,844,128	$12,697.60
Kentucky	$19,512	$11,830	$31,342	4,425,092	$7,082.79
North Carolina	$30,426	$13,930	$44,356	10,042,802	$4,416.70
Tennessee	$18,806	$13,156	$31,962	6,600,299	$4,842.51
Virginia	$36,257	$9,706	$45,963	8,382,993	$5,482.89
Per-capita figures are calculated by taking the state's total spending and dividing by the number of state residents according to United States Census Bureau estimates.[8] Source: National Association of State Budget Officers, "Examining fiscal 2013-2015 state spending," accessed April 4, 2016

Spending by function[edit]

See also: State spending by function as a percent of total expenditures

State spending in West Virginia can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2014 information is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percentages, indicating the share of the total budget spent per category.^[2]

In fiscal year 2014, Medicaid accounted for 14.8 percent of West Virginia's total expenditures.

State spending by function as a percent of total expenditures, FY 2014
State	K-12 education	Higher education	Public assistance	Medicaid	Corrections	Transportation	Other
West Virginia	9.8%	12.1%	0.5%	14.8%	1.0%	5.4%	56.4%
Kentucky	17.4%	23.9%	0.7%	24.0%	2.1%	9.5%	22.4%
North Carolina	22.4%	14.6%	0.5%	30.4%	4.5%	10.7%	16.8%
Tennessee	18.3%	14.2%	0.3%	30.6%	3.1%	5.7%	27.8%
Virginia	15.1%	15.2%	0.3%	17.2%	2.7%	12.0%	37.4%
Source: National Association of State Budget Officers Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[2]

Spending trends[edit]

Between 2010 and 2014, the share of the West Virginia state budget spent on Medicaid increased from 12.6 percent in 2010 to 14.8 percent in 2014. See the table below for further details (figures are rendered as percentages, indicating the share of the total budget spent per category).^[2][9][10]

Spending by function from 2010 to 2014 (as percentages)
Year	K-12 education	Higher education	Public assistance	Medicaid	Corrections	Transportation	Other
2014	9.8%	12.1%	0.5%	14.8%	1.0%	5.4%	56.4%
2013	10.5%	13.7%	0.5%	13.5%	1.1%	5.2%	55.6%
2012	10.8%	14.1%	0.7%	12.7%	1.0%	5.8%	54.9%
2011	10.4%	12.8%	1.0%	12.9%	1.0%	6.0%	56.0%
2010	10.6%	11.9%	0.6%	12.6%	1.1%	5.8%	57.4%
Source: National Association of State Budget Officers Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[2]

Fiscal year budgets[edit]

Fiscal year 2016[edit]

See budget bill: HB 2016 Governor Earl Ray Tomblin announced his fiscal year 2016 budget proposal on January 14, 2015. Under this proposal, total state spending would have totaled $22.7 billion, and $4.32 billion would have come from general revenue spending. Approximately 45.7 percent of the state's general revenue spending was to go to education, while 26.4 percent was designated for health and human services.^[11]

Governor Tomblin signed the official budget into law on March 24, 2015. The final budget totaled about $4.3 billion in general revenue spending, but did require a withdrawal of $14.8 million from the state's rainy day fund. The governor stated that future budgets should strive to reduce the state's debt and refrain from making further withdrawals from the rainy day fund.^[11]

State debt[edit]

See also: State debt

According to a January 2014 report by the nonprofit organization State Budget Solutions, West Virginia had a state debt of approximately $25 billion. Its state debt per capita was $13,459. In this report for fiscal year 2012, state debt was calculated based on four components: "market-valued unfunded public pension liabilities, outstanding government debt, unfunded other post employment benefit (OPEB) liabilities, and outstanding unemployment trust fund loans." The report revealed that altogether state governments faced a combined $5.1 trillion in debt, which amounted to $16,178 per capita in the nation.^[12][13]

Total 2012 state debt
State	Total state debt	State debt per capita	Per capita debt ranking
West Virginia	$24,972,461,000	$13,459	29
Kentucky	$86,245,730,000	$19,689	11
North Carolina	$107,580,297,000	$11,032	42
Tennessee	$41,049,738,000	$6,358	50
Virginia	$91,339,102,000	$11,158	41
Sources: State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014

Taxpayer burden[edit]

TIA Methodology: To figure a state’s taxpayer burden or surplus, TIA looked at a state’s total reported assets minus capital assets and assets restricted by law (buildings, roads, land, etc.) to calculate “available assets,” which were then compared to the amount of money the state owes in bills, including retirement obligations such as pension plans and healthcare benefits for retirees. If the difference between available assets and total bills was positive, TIA called this a surplus; if it was negative, this was a burden. This amount was then divided by the number of individual tax returns with a positive tax liability, thus expressing the total state surplus or burden on a per-taxpayer basis.

According to a report released in September 2015 by the nonprofit Truth in Accounting (TIA), West Virginia ranked 17th worst in the country in “taxpayer burden.” Rather than using per capita state debt, TIA ranked states based on what it called a “taxpayer burden,” a term that reflects “the amount each taxpayer would have to send to their state’s treasury in order for the state to be debt-free.” On the other hand, states that had sufficient resources to pay their bills were said to have a “taxpayer surplus,” which represents the amount that each taxpayer would receive if the state were to disburse its excess funds.

Based on analysis of West Virginia’s Comprehensive Annual Financial Report from June 30, 2014, and actuarial reports for the state’s retirement plans, TIA concluded that $6 billion in promised retirement benefits were unfunded, but only $114.5 million of these liabilities were reported on West Virginia’s balance sheet. Even more misleading, the state’s balance sheet actually shows a net pension asset of $898.8 million. With all of the unfunded retirement benefits included in the total debt, the state had a shortfall of $6.9 billion, or a taxpayer burden of $13,000.^[14]

Public pensions[edit]

See also: West Virginia public pensions and West Virginia public employee salaries

Between fiscal years 2008 and 2012, the funded ratio of West Virginia's state-administered pension plans decreased from 70.4 percent to 64 percent. The state paid 101 percent of its annual required contribution, and for fiscal year 2012 the pension system's unfunded accrued liability totaled $5.7 billion. This amounted to $3,078 in unfunded liabilities per capita.^[15][16]

Credit ratings[edit]

See also: State credit ratings

Credit rating agencies, such as Standard and Poor's, assign grades to states that take into account a state's ability to pay debts and the general health of the state's economy. Generally speaking, a higher credit rating indicates lower interest costs on the general obligation bonds states sometimes sell to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). This in turn results in lower interest costs, thereby lowering the cost to taxpayers.^[17][18]

The table below lists the Standard and Poor's credit ratings for West Virginia and surrounding states from 2004 to 2014. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest.^[19]

State credit ratings, 2004 to 2014
State	2014	2013	2012	2011	2010	2009	2008	2007	2006	2005	2004
West Virginia	AA	AA	AA	AA	AA	AA	AA-	AA-	AA-	AA-	AA-
Kentucky	AA-	AA-	AA-	AA-	AA-	AA-	AA-	AA-	AA-	AA-	AA-
North Carolina	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA
Tennessee	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA	AA
Virginia	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA
Source: Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014

Economic indicators[edit]

See also: Economic indicators by state

Broadly defined, a healthy economy is typically one that has a "stable and strong rate of economic growth" (gross state product, in this case) and low unemployment, among many other factors. The economic health of a state can significantly affect its healthcare costs, insurance coverage, access to care, and the physical and mental health of its citizens. For instance, during economic downturns, employers may reduce insurance coverage for employees, while those who are laid off may lose coverage altogether. Individuals also tend to spend less on non-urgent care or postpone visits to the doctor when times are hard. These changes in turn may affect the decisions made by policymakers as they react to shifts in the industry. Additionally, a person's socioeconomic status has profound effects on their access to care and the quality of care received.^[20][21][22]

The greatest portion of West Virginia's population earned annual incomes between 200 and 399 percent of the federal poverty level, with a median annual household income of $43,361, above only that of Kentucky. West Virginia was one of only five states nationwide whose unemployment rates rose between September 2013 and September 2014.^{[23][24][25][26]}

Note: Gross state product (GSP) on its own is not necessarily an indicator of economic health; GSP may also be influenced by state population size. Many factors must be looked at together to assess state economic health.

Various economic indicators by state
State	Distribution of population by FPL* (2013)				Median annual income (2011-2013)	Unemployment rate		Total GSP (2013)†
	Under 100%	100-199%	200-399%	400%+		Sept. 2013	Sept. 2014
West Virginia	18%	22%	33%	27%	$43,361	6.4%	6.6%	$73,970
Kentucky	20%	22%	30%	28%	$42,260	8.3%	6.7%	$183,373
Ohio	14%	21%	33%	32%	$46,672	7.4%	5.6%	$565,272
Virginia	11%	15%	26%	48%	$65,635	5.5%	5.5%	$452,585
United States	15%	19%	30%	36%	$52,047	7.2%	5.9%	$16,701,415
* Federal Poverty Level. "The U.S. Census Bureau's poverty threshold for a family with two adults and one child was $18,751 in 2013. This is the official measurement of poverty used by the Federal Government." † Median annual household income, 2011-2013. ‡ In millions of current dollars. "Gross State Product is a measurement of a state's output; it is the sum of value added from all industries in the state." Source: The Henry J. Kaiser Family Foundation, "State Health Facts"

Budget process[edit]

State documents and agenciesBelow are links to official West Virginia budget and financial documents. The first is the state's Comprehensive Annual Financial Report (CAFR). A CAFR is a detailed presentation of a government entity's financial condition. This includes fiscal activities and balances for a fiscal year. The second link is to the state's relevant budget agency or office. West Virginia CAFR West Virginia budget agency

The state operates on an annual budget cycle. The sequence of key events in the budget process is as follows:^[27]

1. Budget instructions are sent to state agencies in August.
2. State agencies submit budget requests by September 1.
3. Agency hearings are held September through November.
4. The governor submits his or her proposed budget to the West Virginia State Legislature on or before the second Wednesday in January. A newly elected governor has until the second Wednesday in February.
5. The legislature adopts a budget in March. A simple majority is required to pass a budget.

West Virginia is one of 44 states in which the governor has line item veto authority.^[27]

The West Virginia State Legislature is constitutionally required to pass a balanced budget. The budget must be balanced before the governor can sign it into law.^[27]

Agencies, offices, and committees[edit]

The following standing committees in the West Virginia State Legislature deal with budget and finance matters:

1. Finance Committee, West Virginia House of Delegates
2. Finance Committee, West Virginia State Legislature
3. Finance Committee, West Virginia State Senate

Transparency[edit]

See also: "Following the Money" report, 2015

The U.S. Public Interest Research Group, a consumer-focused nonprofit organization based in Washington, D.C., released its annual report on state transparency websites in March 2015. The report, entitled "Following the Money," measured how transparent and accountable state websites were with regard to state government spending.^[28] According to the report, West Virginia received a grade of C and a numerical score of 73, indicating that West Virginia was "Middling" in terms of transparency regarding state spending.^[28]

As published 2015[edit]

State finances in the U.S.
State tax policy in the U.S.
Pension Policy
State finances on the ballot Taxes on the ballot Glossary of state budget terms Public pensions

The information on this tab contains: Spending (fiscal years 2013 and 2014) Revenues (fiscal year 2013) State debt (fiscal year 2012) Federal aid to the state budget (fiscal year 2012) Budget process

Between fiscal years 2013 and 2014, total government spending in West Virginia increased by approximately $1.6 billion, from $22.2 billion in fiscal year 2013 to an estimated $23.8 billion in 2014. This represented a 7 percent increase. The cumulative rate of inflation during the same period was 1.58 percent, calculated using the Consumer Price Indices for January 2013 and January 2014. As of 2014, financial services firm Standard and Poor's had assigned West Virginia a credit rating of AA.^[29][30][31]

Spending[edit]

Definitions[edit]

The following terms are used to describe a state's finances:

• Revenues come mainly from tax collections, licensing fees, federal aid, and returns on investments.
• Expenditures generally include spending on government salaries, infrastructure, education, public pensions, public assistance, corrections, Medicaid, and transportation.
• State debt refers to the money borrowed to make up for a deficit when revenues do not cover spending.
• The state credit rating is the grade given by a credit rating agency based on the general financial health of the state's government and economy.
• State funds include general and other state-based funds. A general fund is "the predominant fund for financing a state's operations." Other state funds are "restricted by law for particular governmental functions or activities."^[4]
• Federal funds are "funds received directly from the federal government."^[4]
• Total spending is calculated by adding together the totals for state and federal funds used for expenditures.

2014 expenditures[edit]

See also: Total state expenditures

The table below breaks down estimated spending totals for fiscal year 2014 (comparable figures from surrounding states are included to provide additional context). Figures for all columns except "Population” and “Per capita spending" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the columns labeled "Population” and “Per capita spending" have not been abbreviated.^[31]

In West Virginia in fiscal year 2014, estimated per capita spending equaled $12,868, a greater amount than in any neighboring state.

Total estimated state spending, FY 2014 ($ in millions)
State	State funds	Federal funds	Total spending	Population	Per capita spending
West Virginia	$19,398	$4,412	$23,810	1,850,326	$12,868.00
Kentucky	$19,221	$9,614	$28,835	4,413,457	$6,533.43
North Carolina	$30,996	$12,850	$43,846	9,943,964	$4,409.31
Tennessee	$18,832	$13,231	$32,063	6,549,352	$4,895.60
Virginia	$35,123	$9,568	$44,691	8,326,289	$5,367.46
Per-capita figures are calculated by taking the state's total spending and dividing by the number of state residents according to United States Census estimates.[32] Source: National Association of State Budget Officers

Spending by function[edit]

See also: State spending by function as a percent of total expenditures

State spending in West Virginia can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2013 information is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percentages, indicating the share of the total budget spent per category.^[31]

In West Virginia in fiscal year 2013, K-12 education accounted for 10.5 percent of total spending, a smaller share than in any neighboring state.

State spending by function as a percent of total expenditures, FY 2013
State	K-12 education	Higher education	Public assistance	Medicaid	Corrections	Trans- portation	Other
West Virginia	10.5%	13.7%	0.5%	13.5%	1.1%	5.2%	55.6%
Kentucky	19.6%	26.7%	0.9%	21.9%	2.4%	9.8%	18.8%
North Carolina	24.8%	12.4%	0.5%	30%	4.6%	10.7%	17%
Tennessee	17.8%	13.9%	0.4%	30.8%	2.8%	6.1%	28.2%
Virginia	15.1%	15.3%	0.4%	16.7%	2.8%	11%	38.7%
Source: National Association of State Budget Officers Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[31]

Spending trends[edit]

Between 2009 and 2013, the share of the West Virginia state budget spent on K-12 education stayed relatively stable, dropping slightly from 10.6 percent to 10.5 percent. See the table below for further details (figures are rendered as percentages, indicating the share of the total budget spent per category).^{[31][9][10][33][34]}

Spending by function from 2009 to 2013 (as percentages)
Year	K-12 education	Higher education	Public assistance	Medicaid	Corrections	Transportation	Other
2013	10.5%	13.7%	0.5%	13.5%	1.1%	5.2%	55.6%
2012	10.8%	14.1%	0.7%	12.7%	1.0%	5.8%	54.9%
2011	10.4%	12.8%	1.0%	12.9%	1.0%	6.0%	56.0%
2010	10.6%	11.9%	0.6%	12.6%	1.1%	5.8%	57.4%
2009	10.6%	8.7%	0.6%	11.9%	1.1%	6.1%	61.0%
Source: National Association of State Budget Officers Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[31]

Revenues[edit]

2013 revenues[edit]

See also: State government tax collections by source

The table below breaks down state government tax collections by source in 2013 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "Population" and "Per capita revenue" are rendered in thousands of dollars (for example, $2,448 translates to $2,448,000). Figures in the columns labeled "Population" and "Per capita revenue" have not been abbreviated.^[5]

West Virginia collected approximately $5.4 billion in state-based taxes in 2013.

State tax collections by source ($ in thousands)
State	Property taxes	Sales and gross receipts	Licenses	Individual income taxes	Corporation net income taxes	Other taxes	Total	2013 population	Per capita collections
West Virginia	$6,149	$2,579,011	$137,437	$1,795,947	$242,429	$617,149	$5,378,122	1,853,595	$2,901.45
Kentucky	$558,377	$5,110,456	$462,534	$3,722,964	$646,875	$314,556	$10,815,762	4,399,583	$2,458.36
North Carolina	N/A	$9,714,217	$1,543,201	$11,068,166	$1,285,907	$157,087	$23,768,578	9,848,917	$2,413.32
Tennessee	N/A	$9,128,175	$1,421,174	$262,842	$1,256,173	$298,527	$12,366,891	6,497,269	$1,903.40
Virginia	$33,188	$6,192,666	$806,572	$10,900,860	$772,001	$481,566	$19,186,853	8,270,345	$2,319.96
Source: Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014

The table below lists 2013 tax collections by source as percentages of total collections. Sales taxes and gross receipts accounted for 48 percent of total state tax collections in West Virginia.^[5]

State tax collections by source (as percentages)
State	Property taxes	Sales and gross receipts	Licenses	Individual income taxes	Corporation net income taxes	Other taxes
West Virginia	0.11%	47.95%	2.56%	33.39%	4.51%	11.48%
Kentucky	5.16%	47.25%	4.28%	34.42%	5.98%	2.91%
North Carolina	N/A	40.87%	6.49%	46.57%	5.41%	0.66%
Tennessee	N/A	73.81%	11.49%	2.13%	10.16%	2.41%
Virginia	0.17%	32.28%	4.20%	56.81%	4.02%	2.51%
Source: Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014

Current fiscal year budget[edit]

Fiscal year 2016[edit]

See budget bill: HB 2016

Governor Earl Ray Tomblin announced his fiscal year 2016 budget proposal on January 14, 2015. Under this proposal, total state spending would have totaled $22.7 billion and $4.32 billion would have come from general revenue spending. Approximately 45.7 percent of the state's general revenue spending was to go to education, while 26.4 percent was designated for health and human services. The governor also stated that, in order to push the state forward and improve, citizens and lawmakers must collaborate for the common good.^[11]

Governor Tomblin signed the official budget into law on March 24, 2015. The final budget totaled about $4.3 billion in general revenue spending, but did require a withdrawal of $14.8 million from the state's rainy day fund. The governor stated that future budgets should strive to reduce the state's debt and refrain from making further withdrawals from the rainy day fund.^[11]

State debt[edit]

See also: State debt

According to a January 2014 report by the nonprofit organization State Budget Solutions, West Virginia had a state debt of approximately $25 billion. Its state debt per capita was $13,459. In this report for fiscal year 2012, state debt was calculated based on four components: "market-valued unfunded public pension liabilities, outstanding government debt, unfunded other post employment benefit (OPEB) liabilities, and outstanding unemployment trust fund loans." The report revealed that altogether state governments faced a combined $5.1 trillion in debt, which amounted to $16,178 per capita in the nation.^[35][36]

Total 2012 state debt
State	Total state debt	State debt per capita	Per capita debt ranking
West Virginia	$24,972,461,000	$13,459	29
Kentucky	$86,245,730,000	$19,689	11
North Carolina	$107,580,297,000	$11,032	42
Tennessee	$41,049,738,000	$6,358	50
Virginia	$91,339,102,000	$11,158	41
Sources: State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014

Public pensions[edit]

See also: West Virginia public pensions and West Virginia public employee salaries

Between fiscal years 2008 and 2012, the funded ratio of West Virginia's state-administered pension plans decreased from 70.4 percent to 64 percent. The state paid 101 percent of its annual required contribution, and for fiscal year 2012 the pension system's unfunded accrued liability totaled $5.7 billion. This amounted to $3,078 in unfunded liabilities per capita.^[15][37]

Credit ratings[edit]

See also: State credit ratings

Credit rating agencies, such as Standard and Poor's, assign grades to states that take into account a state's ability to pay debts and the general health of the state's economy. Generally speaking, a higher credit rating indicates lower interest costs on the general obligation bonds states sometimes sell to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). This in turn results in lower interest costs, thereby lowering the cost to taxpayers.^[17][38]

The table below lists the Standard and Poor's credit ratings for West Virginia and surrounding states from 2004 to 2014. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest.^[39]

State credit ratings, 2004 to 2014
State	2014	2013	2012	2011	2010	2009	2008	2007	2006	2005	2004
West Virginia	AA	AA	AA	AA	AA	AA	AA-	AA-	AA-	AA-	AA-
Kentucky	AA-	AA-	AA-	AA-	AA-	AA-	AA-	AA-	AA-	AA-	AA-
North Carolina	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA
Tennessee	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA	AA
Virginia	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA
Source: Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014

Federal aid to the state budget[edit]

See also: Federal aid to state budgets

State governments receive aid from the federal government to fund a variety of joint programs, such as Medicaid. Federal aid varies from state to state. For example, Mississippi received approximately $7.7 billion in federal aid in 2012, which accounted for more than 45 percent of the state's general revenues. By contrast, Alaska received roughly $2.9 billion in federal aid in 2012, just under 20 percent of the state's general revenues.^[7]

The table below notes what share of West Virginia’s general revenues came from the federal government in 2012. That year, West Virginia received approximately $4.3 billion in federal aid, 34.7 percent of the state's total general revenues. Figures from surrounding states are provided for additional context.^[7]

Federal aid to state budgets, 2012
State	Total federal aid ($ in thousands)	Federal aid as a % of general revenue	Ranking
West Virginia	$4,267,399	34.71%	19
Kentucky	$8,056,691	35.69%	14
North Carolina	$15,192,577	33.24%	25
Tennessee	$11,198,575	40.97%	3
Virginia	$9,278,113	23.53%	49
Source: United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014

Stimulus[edit]

According to Recovery.gov, the official government website for the Recovery Accountability and Transparency Board, under the American Recovery and Reinvestment Act, West Virginia received $1.61 billion in federal stimulus spending between February 2009 and June 2013.^[40]

Budget process[edit]

The state operates on an annual budget cycle. The sequence of key events in the budget process is as follows:^[27]

1. Budget instructions are sent to state agencies in August.
2. State agencies submit budget requests by September 1.
3. Agency hearings are held September through November.
4. The governor submits his or her proposed budget to the West Virginia State Legislature on or before the second Wednesday in January. A newly elected governor has until the second Wednesday in February.
5. The legislature adopts a budget in March. A simple majority is required to pass a budget.

West Virginia is one of 44 states in which the governor has line item veto authority.^[27]

The West Virginia State Legislature is constitutionally required to pass a balanced budget. The budget must be balanced before the governor can sign it into law.^[27]

Agencies, offices, and committees[edit]

The following standing committees in the West Virginia State Legislature deal with budget and finance matters:

1. Finance Committee, West Virginia House of Delegates
2. Finance Committee, West Virginia State Legislature
3. Finance Committee, West Virginia State Senate

Studies and reports[edit]

U.S. PIRG "Following the Money" report[edit]

See also: "Following the Money" report, 2014

The U.S. Public Interest Research Group, a consumer-focused nonprofit organization based in Washington, D.C., released its annual report on state transparency websites in April 2014. The report, entitled "Following the Money," measured the transparency and accountability of state websites with regard to state government spending.^[41] According to the report, West Virginia received a grade of C and a numerical score of 72, indicating that West Virginia was middling in terms of transparency regarding state spending.^[41]

As published 2014[edit]

The information on this tab contains: Spending (fiscal year 2013) Spending by function (fiscal year 2012) Spending trends (fiscal years 2008 to 2012) Revenues (fiscal year 2013) Historical spending (fiscal years 2009 to 2012) Budget transparency

Between fiscal year 2009 and fiscal year 2013, West Virginia's total expenditures increased by approximately $3 billion, from $20.4 billion in 2009 to $23.4 billion in 2013. This represented a 12.8 percent increase, outpacing the cumulative rate of inflation during the same period (9.06 percent, calculated using the Consumer Price Indices for January 2009 and January 2013).^[42][43]

Spending[edit]

Definitions[edit]

Although each state executes its budget process differently, the National Association of State Budget Officers (NASBO) breaks down state expenditures into four general categories. This allows for comparisons among the 50 states. NASBO's categories are as follows:^[44]

• General fund: "The predominant fund for financing a state’s operations. Revenues are received from broad-based state taxes. However, there are differences in how specific functions are financed from state to state."^[44]
• Other funds: "Expenditures from revenue sources that are restricted by law for particular governmental functions or activities. For example, a gasoline tax dedicated to a highway trust fund would appear in the 'Other funds' column. For Medicaid, other state funds include provider taxes, fees, donations, assessments, and local funds."^[44]
• Federal funds: "Funds received directly from the federal government."^[44]
• Bonds: "Expenditures from the sale of bonds, generally for capital projects."^[44]

2013[edit]

The table below breaks down expenditures for fiscal year 2013 (comparable figures from surrounding states are provided to give additional context).^[44] Figures for all columns except "Per capita expenditures" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita expenditures" have not been abbreviated.

Total state expenditures, FY 2013 ($ in millions)[44]
State	General fund	Federal funds	Other funds	Bonds	Total	Per capita expenditures**
West Virginia	$4,159	$4,394	$14,736	$74	$23,363	$12,599.34
Kentucky	$9,426	$8,001	$8,246	$0	$25,673	$5,841.02
North Carolina	$20,602	$17,459	$12,543	$785	$51,389	$5,218.19
Tennessee	$12,622	$13,055	$5,394	$382	$31,453	$4,841.92
Virginia	$17,691	$9,546	$16,191	$1,167	$44,595	$5,398.65
**Per capita figures are calculated by taking the state's total expenditures and dividing by the number of state residents according to United States Census estimates.[45] Source: National Association of State Budget Officers

Spending by function[edit]

2012[edit]

State expenditures in West Virginia can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2012 data is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percentages, indicating the share of the total budget spent per category.

Expenditures by function, FY 2012 (as percentages)[44]
State	Elementary and secondary ed.	Higher ed.	Public assistance	Medicaid	Corrections	Transportation	Other
West Virginia	10.8%	14.1%	0.7%	12.7%	1.0%	5.8%	54.9%
Kentucky	19.8%	25.7%	0.9%	22.5%	2.4%	8.9%	19.8%
North Carolina	23.2%	9.0%	0.5%	24.7%	4.2%	9.9%	28.4%
Tennessee	17.7%	12.8%	0.4%	30.7%	2.7%	6.4%	29.3%
Virginia	16.0%	13.1%	0.4%	16.2%	2.9%	11.3%	40.1%
Source: National Association of State Budget Officers Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[44]

Spending trends[edit]

From 2008 to 2012, expenditures on elementary and secondary education, public assistance, Medicaid, corrections and transportation all decreased, with expenditures on the category "Other" falling the most at 4.6 percentage points. During that same time period, expenditures on higher education decreased by 4.3 percentage points. The table below details changes in expenditures from 2008 to 2012.^{[44][9][10][33][34]} Figures are rendered as percentages, indicating the share of the total budget spent per category.

Expenditures from 2008 to 2012 (as percentages)
Year	Elementary and secondary ed.	Higher ed.	Public assistance	Medicaid	Corrections	Transportation	Other
2012	10.8%	14.1%	0.7%	12.7%	1.0%	5.8%	54.9%
2011	10.4%	12.8%	1.0%	12.9%	1.0%	6.0%	56.0%
2010	10.6%	11.9%	0.6%	12.6%	1.1%	5.8%	57.4%
2009	10.6%	8.7%	0.6%	11.9%	1.1%	6.1%	61.0%
2008	11.3%	9.8%	0.4%	12.1%	1.1%	5.7%	59.5%
Change in %	-0.5%	-4.3%	0.3%	0.6%	-0.1%	0.1%	-4.6%
Source: National Association of State Budget Officers Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[44]

Revenues[edit]

2013 revenues[edit]

The table below breaks down general fund revenues by source in fiscal year 2013 (comparable figures from surrounding states are also provided to give additional context).^[44] Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, FY 2013 ($ in millions)[44]
State	Sales tax	Personal income tax	Corporate income tax	Gaming tax	Other taxes and fees	Total	Per capita revenue
West Virginia	$1,197	$1,722	$249	$0	$982	$4,150	$2,238.04
Kentucky	$3,022	$3,723	$401	$0	$2,202	$9,348	$2,126.82
North Carolina	$5,309	$10,958	$1,192	$0	$3,100	$20,559	$2,087.62
Tennessee	$6,643	$126	$1,083	$0	$3,551	$11,403	$1,755.39
Virginia	$3,249	$11,093	$821	$0	$1,259	$16,421	$1,987.92
**Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates for 2013.[45] Source: National Association of State Budget Officers

Revenue trends[edit]

The table below details the change in revenue sources in the general fund from 2009 to 2013.^[44][9] Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, West Virginia ($ in millions)[44][9]
Year	Sales tax	Personal income tax	Corporate income tax	Gaming tax	Other taxes and fees	Total	Per capita revenue
2013	$1,197	$1,722	$249	$0	$982	$4,150	$2,238.04
2012	$1,178	$1,647	$174	$0	$1,017	$4,016	$2,163.00
2011	$1,148	$1,593	$303	$0	$1,020	$4,064	$2,190.62
2010	$1,095	$1,447	$233	$0	$983	$3,758	$2,026.81
2009	$1,110	$1,557	$270	$0	$964	$3,901	$2,143.67
Change in %	7.84%	10.60%	-7.78%	N/A	1.87%	6.38%	4.40%
**Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates.[45][46] Source: National Association of State Budget Officers

Historical spending[edit]

The information on state budget historical spending below was compiled by the National Association of State Budget Officers. Figures reflect the reported "Total Expenditures" in Table 1. Figures for all columns are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000).^[44][10]

Historical state spending in West Virginia ($ in millions)
Fiscal year	General Fund		Other funds		Federal funds		Bonds		Budget totals
	Total	% of Budget	Total	% of Budget	Total	% of Budget	Total	% of Budget
2011-2012	$4,144	19%	$13,540	62%	$4,064	19%	$73	0%	$21,821
2010-2011	$3,770	18%	$12,906	61%	$4,460	21%	$62	0%	$21,198
2009-2010	$3,704	18%	$12,122	59%	$4,475	22%	$77	0%	$20,378
Averages:	$3,873	18%	$12,856	61%	$4,333	21%	$71	0%	$21,132

Budget transparency[edit]

Transparency evaluation
	Transparency West Virginia
Searchability	Y
Grants	Y
Contracts	N
Line item expenditures	Y
Dept./agency budgets	Y
Public employee salaries	N
Last evaluated in 2010.

See also: Evaluation of West Virginia state website and Constitutional provisions regarding reading of bills

As of 2010, West Virginia had limited transparency. The West Virginia State Legislature website posted information about state grant awards here but during the 2009 legislative session, they did not pass "The Budget & Spending Transparency Act," which would have created greater spending transparency.^[47]

Government tools[edit]

The table to the right is helpful in evaluating the level of transparency provided by Transparency West Virginia.

Independent transparency sites[edit]

West Virginia University students compiled a report finding that the state was a "laggard" in the area of budget transparency and made recommendations for increased transparency, including:^[48]

• Budget requests and presentations from all state agencies, boards and commissions should be available online.
• Common standards should be set for agency disclosures across the state government to make sure that information is available to the public in an easy-to-find manner.
• Online public disclosure standards of other states with high marks for transparency and accountability should be copied and set for West Virginia.

Multi-measure budget transparency profile[edit]

The Institute of Government and Public Affairs at the University of Illinois created a multi-measure transparency profile for West Virginia, which measured state transparency as of September 2011 using indicators from a range of organizations. These indicators measured both website transparency and other recognized facets of governmental transparency. In addition, IGPA presented four unique indicators of non-transparency based on the observation that transfers or reassignments between general and special funds can obscure the true fiscal condition of a state.^[49][50]

IGPA devised a budget transparency index based on information available from the National Association of State Budget Officers. West Virginia tied for eighth in the nation with 11 other states, earning six out of eight possible points.^[50]

West Virginia - IGPA score for budget process, contents and disclosure
Budget transparency indicator	Yes or no?
Performance measures
"Generally Accepted Accounting Principles" budget	N
Multi-year forecasting
Annual cycle
Binding revenue forecast	N
Legislative revenue forecast
Nonpartisan staff
Constitution or statutory tax/spend limitations
TOTAL	6

In addition to the individual state profile, IGPA offers a 50-state comparison and profiles for other states.^[50]

Prior fiscal year budgets[edit]

Fiscal year 2015[edit]

See budget bill: SB 306

Governor Earl Ray Tomblin announced his fiscal year 2015 budget proposal on January 8, 2014. On March 19, 2014, Tomblin signed into law the fiscal year 2015 budget. The enacted budget totaled $22.2 billion in overall spending. The governor made a series of line-item vetoes resulting in spending reductions totaling approximately $67 million.^[2]

Fiscal year 2014[edit]

See budget bill: H.B. 2014

West Virginia state budget -- 2014
West Virginia State Legislature
Text:	H.B. 2014
Legislative history
Introduced:	February 13, 2013
House:	April 12, 2013
Vote (lower house):	85-13
Senate:	April 13, 2013
Vote (upper house):	33-1
Conference:	April 17, 2013
Governor:	Earl Ray Tomblin
Signed:	April 22, 2013

The state's FY 2014 budget was signed into law by Governor Earl Ray Tomblin on April 22, 2013.^[51] A copy of the full budget bill can be found here.

Fiscal year 2013[edit]

See also: West Virginia state budget (2012-2013)

Fiscal year 2012[edit]

See also: West Virginia state budget (2011-2012)

Fiscal year 2011[edit]

See also: West Virginia state budget (2010-2011)

Fiscal year 2010[edit]

See also: West Virginia state budget (2009-2010)

See also[edit]

• West Virginia state budget and finances

Footnotes[edit]

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