States report large FY2026 budget surpluses and changes
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Charleston, West Virginia. State officials announced on July 1 that West Virginia closed Fiscal Year 2026 with a $370 million general revenue surplus, reporting total General Revenue Fund collections of $5.693 billion; officials cited a $159 million personal income tax surplus and $534 million in severance tax receipts that exceeded estimates.
Little Rock, Arkansas. On July 2 Arkansas officials reported a $655 million surplus for FY2026, the fifth-largest in state history, with gross collections near $8.69 billion and transfers into multiple reserve funds; Wisconsin reported May declines but a 3.7% fiscal-year increase, and state tax law changes and scheduled cuts are expected to affect future collections and budgeting.
More context
Timeline
- 1. 2025: Wisconsin enacted income tax bracket expansion and retirement income exemptions for the 2025 tax year.
- 2. June 30, 2026: Fiscal Year 2026 ended; states closed accounts and tallied collections.
- 3. July 1, 2026: West Virginia announced a $370 million surplus and began FY2027.
- 4. July 1–2, 2026: Arkansas announced a $655 million FY2026 surplus and transferred funds into reserve accounts.
- 5. Early July 2026: Reports showed Wisconsin May collections down month-to-month but FY collections up 3.7% year-over-year.
Why it matters
Surpluses like West Virginia's and Arkansas's mean more money for state services. It could affect your roads, schools, and public safety. Check your state's budget news. See where the money might go.
Sources
JQJO Editorial Desk · Human reviewed · AI assisted. Report a correction.
