Two West Virginia state senators are voicing serious concerns about the state’s financial future following a recent budget presentation during interim legislative meetings.
Senators Mike Oliverio and Joey Garcia appeared this week on WAJR’s “Talk of the Town” to discuss troubling trends in revenue and rising expenses.
Oliverio noted that while the state experienced temporary revenue spikes during the pandemic due to federal aid and high severance and personal income tax collections, those boosts were short-lived. Since then, revenue growth has stalled while costs continue to climb.
“Our revenues have been flat, except for those pandemic-era bumps,” Oliverio said. “When industries like coal, oil, and gas are booming, you get more people working, which raises personal income and severance tax collections. But we’re not seeing that now.”
West Virginia’s total state budget stands at about $5 billion, with personal income taxes contributing around $2 billion. However, since March 2023, those income tax collections have been reduced by over 27%, Oliverio added.
Garcia echoed those concerns, pointing out a 4% year-over-year drop in income tax revenue by the end of May. “That’s a sign of a downward trend,” he said. “We’re losing government and mining jobs, and the budget numbers are starting to reflect that.”
Both senators expressed worries about the growing cost of the Hope Scholarship, a school-choice program that will become available to all West Virginia school-aged children in the 2026-2027 school year if certain enrollment thresholds are met.
“We have to be careful,” Oliverio warned. “We can’t neglect our public schools. We still need to fund them strongly, and that balance is going to be difficult.”
Garcia was even more blunt: “The Hope Scholarship could mean a $190 million increase in spending, and we’re not even meeting the needs of our public school teachers and staff. That’s a major concern.”
Another looming issue is the rising cost of the Public Employees Insurance Agency (PEIA). Garcia noted that PEIA costs are expected to jump by $49 million in 2027 and another $56 million in 2028. The recurring funding struggles are causing state employees to lose confidence.
“There’s only so many times you can ask public workers to accept a pay raise one year and lose it to higher PEIA costs the next,” Garcia said. “Eventually, they’ll ask, ‘Is it still worth staying in public service?’”
As West Virginia faces flat revenues, higher expenses, and expanding financial obligations, both senators say now is the time for serious conversations and realistic planning.
“We can’t afford to kick the can down the road anymore,” Garcia said. “It’s time to address these problems head-on before they become full-blown crises.”
