SB 250 SENATE: 30-3 � HOUSE: 68-15
The West Virginia Legislature completed the 2027 fiscal year budget in record-time when it completed action on SB 250 with nine days remaining in session. The budget appropriates approximately $ 5.5 billion in general revenue spending and authorizes the expenditure of $ 21.5 billion, which includes federal and special revenue spending authority.
Major appropriations within this budget include $ 276 million to fully fund the Hope Scholarship program, $ 125 million additional funds for state roads, $ 30 million for the Infrastructure and Jobs Development Council for water and sewer improvements and $ 10 million for the state’ s Dilapidated Properties Program. The budget also includes a 3 % pay raise for state employees, teachers and other public employees.
The speed at which the budget was completed was tied to the Legislature’ s ability to potentially override line-item vetoes by Governor Patrick Morrisey. In 2025, Morrisey utilized his line-item veto authority on 29 separate legislative appropriations. This year, Morrisey only reduced nine line-item appropriations, which was not enough to provoke a legislative override.
SB 392 SENATE: 32-2 � HOUSE: 88-8
West Virginians will receive an immediate 5 % reduction in their income tax rates due to the enactment of SB 392. The top tax rate, for individuals earning more than $ 60,000, was reduced from 4.82 % to 4.58 %, with lower brackets reduced proportionally. These reductions are retroactively effective as of January 1, 2026. This tax reduction will cost the state an estimated $ 125 million in revenue.
This bill and the corresponding debate over income tax reductions became a central point of conversation throughout the legislative session. Morrisey advocated for a 10 % reduction, but his budget submitted to the Legislature only accounted for a 5 % reduction. Morrisey says an additional 5 % could be found through budget offsets. Budget negotiations between the executive and legislative branches hinged on the level of income tax reductions that would be achieved. Following tense negotiations, the Legislature settled on 5 %, and Morrisey signed it into law.
FINANCE
Written by James Bailey
SB 393 & 400
SB 393 – SENATE: 32-0 � HOUSE: 89-6 SB 400 – SENATE: 33-1 � HOUSE: 93-1
SBs 393 and 400 are the standard annual statutory updates to the state’ s personal and corporate income tax provisions. Legislation like these bills are enacted annually to align the state’ s income tax provisions to updates made at the federal level. These annual updates are done to make compliance and administration consistent among state and federal tax filings.
SB 393 addresses the corporate net income tax. It incorporates federal tax code changes through December 31, 2025, into state law, ensuring state corporate income tax calculations stay current with federal rules. SB 400 updates provisions related to the personal income tax. This legislation diverts from federal income tax provisions as it relates to gaming and gambling losses. The One Big Beautiful Bill Act of 2025 altered how gambling losses are deducted from personal income taxes in a disadvantageous manner to gamblers. This legislation preserves the existing West Virginia treatment of gambling losses.
HB 5168 SENATE: 34-0 � HOUSE: 96-1
HB 5168 establishes dedicated funding for county emergency medical services( EMS) through excess state lottery revenues. Up to $ 12 million will be allocated annually to three special revenue accounts administered by the Office of Emergency Medical Services.
The County Emergency Medical Services Fund will receive up to $ 3 million annually, which will be distributed only to counties having a countywide EMS excess levy or fee. Distributions will be made proportionally based on each county’ s share of the total population of qualifying counties. The All-County Emergency Medical Services Fund will receive up to $ 3 million annually, which will be distributed to all counties, regardless of a countywide EMS levy or fee. The distributions will be made proportionally based on each county’ s share of total state population.
The bill also reestablishes an existing EMS fund as the Emergency Medical Services Crisis Response and Mental Health Treatment Fund, which will now receive up to $ 6 million annually. This fund may be used for training, equipment, supplies, facility maintenance and crisis response services. The first $ 1 million must be used for mental health training and support programs. Additional funds may be awarded to counties but are subject to a 30 % local matching requirement. •
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WEST VIRGINIA EXECUTIVE