The So-Called Surplus

West Virginia state government has about $47.3 million to play with after the latest budget year ended with more general revenue than expected.

This is at least the third straight year when the array of taxes and fees that fund the state's main budget exceeded estimates by a sizable amount.

All told, the state ended the fiscal year June 30 with $95.6 million over projections. As I note, state law requires that half of such a surplus must be deposited in the state's "rainy day" account.

Gov. Joe Manchin's office says they have not yet decided what to do with the rest. Past surpluses have helped close the yawning funding gap in the state's main teachers fund. But lawmakers are also looking for funding for "Community Participation Projects," the successor vehicle to the fabled Budget Digest for delivering funding earmark to their home districts.

I also note that the administration's 5-year projection predicts that spending will soon eclipse revenues, thanks largely to health care costs. The fiscal year that began July 1 must also weather revenue changes caused by the modest cuts to the food, business franchise and corporate net income taxes.

I drew my story for The Associated Press from the latest collections report from the Department of Revenue. Manchin also issued a press release on the topic, which is quoted by both AP and The Charleston Gazette.

MetroNews, meanwhile, spoke to state Budget Director Mike McKown.