CHARLESTON, W.Va. -- State Deputy Revenue Secretary Mark Muchow told state lawmakers Tuesday the state's revenue collections may not be what they've been but he still considers the state's economy strong.
The latest state revenue figures show collections are just about $5 million ahead of projection. This time last year, the state's revenue report just for the month of November, 2023, showed that collections exceeded estimates by $44 million. After five months of the last fiscal year, collections exceeded estimates by $286.2 million.
Muchow told members of the Joint Committee on Government and Finance a closure at the numbers shows a stable economy.
"The employment levels are very consistent in West Virginia. We have near-record low unemployment. The overall employment numbers have been steady and have actually moved up this year," Muchow said. "The biggest factor there is labor force supply and availability."
Muchow also told lawmakers consumer spending remains steady.
"But spending has shifted away a little bit from goods," Muchow said. "We had strong goods spending during the post-covid period but it's shifting more to services. Certainly, we are spending more on insurance premiums for homes and automobiles."
Senate Finance Committee Chairman Eric Tarr, R-Putnam, questioned Muchow about some more concerning numbers that he sees in the sagging revenues of the corporate income tax and B&O tax.
"All of those indicators from a person who owns businesses puts alarm bells in my years," Tarr said.
Muchow said he would look more at the revenues from the personal income tax, the sales tax and insurance taxes to indicate the health of the state's economy."
Tarr told Muchow he was optimistic that the economy will change under the incoming Trump administration.
Governor-elect Patrick Morrisey has promised a detailed look at the state's spending as he takes office.