Officials feel solid about state finances as legislative session starts

TLDR: Midway through the fiscal year, state officials in West Virginia are feeling confident about the state’s finances. Despite a significant tax cut, personal income tax collections are only down 3 percent from the prior year. This positive trend is in contrast to many other states that are reporting budget gaps and deficits. Through December, West Virginia revenue collections are $406 million ahead of estimates. Factors to watch for the remainder of the year include a new state law providing a workaround to the federal $10,000 cap on state and local tax deductions and triggers that could further reduce personal income tax rates. Officials are optimistic about the state’s ability to meet its revenue estimates and potentially trigger additional tax cuts.