Gov. Patrick Morrisey spoke with WCHS-TV following his State of the State Address to outline his tax reform priorities and broader budget goals for West Virginia.
An income tax cut is at the top of Morrisey’s agenda.
West Virginia currently uses a personal income tax reduction system tied to economic triggers that must be met before additional cuts take effect. According to state officials, current economic conditions are not strong enough to activate the next scheduled reduction.
Despite that, Morrisey is advocating for an immediate tax cut. While he initially supported a 10% reduction, the budget proposal recently delivered to lawmakers calls for a 5% cut.
“I think it’s so important that we stay competitive with other states that we touch and we address the affordability challenges with high energy bills and grocery bills,” Morrisey said. “We need a tax cut, and I’m asking the Legislature to move forward on that right away. We need to provide relief to people who are struggling, and we need to keep pace with the other states around us. When I see Kentucky and Ohio engaging in tax cuts, I know that we cannot sit on our heels.”
Morrisey said he believes the economic triggers built into existing tax cut legislation are overly conservative and could prevent West Virginia from remaining competitive with neighboring states that have already enacted reductions.
“We have to keep making tough decisions, but I want to prioritize income tax relief,” Morrisey said. “It’s one of the best ways to make life more affordable for citizens in the Mountain State.”
Some lawmakers have expressed caution, citing concerns about long-term budget stability and the potential for future shortfalls. West Virginia is currently operating with a $128 million budget surplus.
In addition to tax reform, Morrisey is proposing a 3% pay raise for state employees, a move estimated to cost approximately $78 million.
The governor is also calling for full funding of the Hope Scholarship school choice program, which carries an estimated $230 million price tag. Morrisey indicated that the state’s public school funding formula could face a comprehensive review in 2026.
“With respect to school aid, we’re willing to work with the Legislature because we know there are some improvements we could make,” Morrisey said. “I’m eager to sit down with them and hear what’s on their minds. There have been some challenges.”
A 5% income tax cut would return an estimated $106 million to taxpayers, while a 10% reduction would total roughly $212 million. Opponents argue that such cuts could reduce funding available for education, infrastructure, and health care.