Governor Claims Budget Surplus, Harvey Gets US Attorney Nomination


The Observer Weekly

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July 3, 2025


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Governor Morrisey Reports Surplus; Fiscal Pressures Remain

West Virginia Governor Patrick Morrisey announced this week that the state ended its FY2025 fiscal year on June 30 with a $254.8 million surplus in its General Revenue Fund. The state collected $5.519 billion in total general revenue, surpassing the official FY2025 estimate and continuing a recent trend of state budget surpluses. However, compared to FY2024, key revenues decreased and expense pressures are expected to increase in light of state and potential federal policy changes.

What Drove the Surplus?

According to the Governor’s July 1 announcement:

  • Personal income tax collections were $103 million above the budgeted estimate, totaling $2.26 billion. However, due to recent rate cuts and a vehicle tax credit, this was still 5.1% lower than FY2024.
  • Consumer sales tax revenue came in just under budget at $1.82 billion, though the shortfall was attributed to timing. Adjusted for collection cycles, sales tax revenue was up 2.4% from FY2024 — a sign of stable consumer activity.
  • Corporate net income tax revenue was $376.2 million, exceeding projections by $58 million but down 19% compared to FY2024.
  • Severance tax collections, driven by natural resource extraction, totaled $439 million — $33 million above budget, though far below the FY2023 peak of nearly $950 million.

Budget for FY2026: Holding the Line

Despite the FY2025 surplus, Governor Morrisey said he does not plan to revise the FY2026 budget, which began July 1. The budget anticipates $5.3 billion in general revenue, effectively flat compared to last year’s estimate.

According to the Governor, “looming federal actions and an increase in state mandatory spending requires us to make smart, fiscally conservative decisions as we begin the new fiscal year. As Governor, I submitted and approved a balanced budget for Fiscal Year 2026, but the state still has fiscal challenges for 2027 and beyond.”

Looking at the state's revenues by source (chart above), the trends further highlight the Governor’s concerns. Of the top four revenue sources, only consumer sales tax revenue has shown consistent growth over the past four years. The biggest change over the past several years has been in the state’s severance tax collections (dark blue segment), which spiked to almost $950 million in FY2023 but are projected to be only $400 million in FY2026.


A message from the Skinner Law Firm

FAQ: Will My Case go to Trial?

Most personal injury cases settle — often before a lawsuit is even filed. But no one knows for sure at the start. That’s why we prepare every case like it’s going to trial. Building strong cases from day one gives our clients the best chance at a faster, better outcome.

>>>Learn more…


Harvey Nominated To Be U.S. Attorney by President Trump

Jefferson County Prosecuting Attorney Matt Harvey has been nominated by President Donald Trump to serve as the United States Attorney for the Northern District of West Virginia.

If confirmed by the United States Senate, Harvey would become the top federal law enforcement official for the region, which includes Jefferson County and encompasses the northern and eastern portions of the state. The Northern District operates offices in Martinsburg, Wheeling, Clarksburg, and Elkins.

Harvey has served as Jefferson County’s Prosecuting Attorney since 2017, following his election in 2016. He was re-elected in 2020 and 2024. In 2023, then-West Virginia Governor Jim Justice appointed Harvey chair of the West Virginia First Foundation, a nonprofit created to oversee opioid settlement funds awarded to the state. The Foundation confirmed this week that Harvey will remain in that role during the nomination process.

A Lengthy Confirmation Process?

Harvey is among 26 individuals recently nominated by President Trump for senior legal and judicial roles, part of a larger group of over 100 pending nominees. His nomination must be reviewed by the Senate Judiciary Committee, which will conduct an interview and decide whether to advance his name to the full Senate for a confirmation vote.

The timeline for Senate action is uncertain. The Judiciary Committee just last week advanced the first five Trump nominees submitted in May, suggesting that Harvey will likely continue serving in Jefferson County for several more months before any transition occurs.

What Happens Locally If He’s Confirmed?

Should Harvey be confirmed, the Jefferson County Commission will be responsible for appointing a new Prosecuting Attorney to serve the remainder of the term. Depending on the timing, the position could appear on the 2026 general election ballot for a partial term, with the next full term up for election in 2028.


A word from the Contemporary American Theater Festival

Playwright Mark St. Germain returns to CATF after the successful and heartwarming run of The Happiest Man on Earth last season. In Magdalene, it’s eighteen years after the crucifixion. Peter reconnects with the banished Mary Magdalene. After casting her out, he seeks her advice and counsel. Questions erupt as they recall different versions of Jesus, His miracles, and His vision for the faith. Whose stories will stand the test of time? Visit CATF.org for your tickets.


JCESA Offers Free CPR and Babysitting Certification Courses

The Jefferson County Emergency Services Agency (JCESA), which provides 24/7 ambulance services across the county, also offers free community classes to help residents learn lifesaving skills.

Two popular programs are currently available:

Both courses are free to Jefferson County residents, though pre-registration is required. Classes are taught by current and retired JCESA professionals and take place at the agency’s headquarters at 419 Sixteenth Avenue in Ranson.

The next CPR course is scheduled for Monday, July 8 and the next Babysitting course will be held on Wednesday, July 10.

In addition to these trainings, JCESA offers other services aimed at improving household emergency readiness. These include the “Vial of Life” program, which helps ensure critical medical information is accessible during emergencies, and home visits to review address signage for improved emergency response times.

According to Captain Craig Horn, JCESA regularly interacts with over 1,000 individuals a year with its education programs and team members enjoy getting to know local residents.

Click on the links above to learn more about each program or visit the JCESA website


A message from Bridge Gallery & Framing

The Bridge Gallery exhibits regional art, offers custom framing and additional art services. Our Summer Exhibit (July 11 – Aug. 3) features the stunning floral photography of Shepherdstown native Keron Psillas Oliveira. The exhibit, titled “Floraveira” is being presented in a variety of creative ways including traditional framing, elegant free hanging images printed on specialty papers and gorgeous silk scarves. Also featured are the Plein-Air paintings of Joshua Hoffman. Joshua will be participating in the Easton, Maryland Plein-Air Festival and joining us for a special Q&A later this month. The gallery is located at 8566 Shepherdstown Pike. Tel: 304-876-2300. Web: BridgeGalleryAndFraming.com.


Events Snapshot: Arts, Culture & Community

Highlights of upcoming events around Jefferson County:

Live Music at The AMP — Oliva Ellen Lloyd performs at The AMP at Sam Michaels Park (235 Sam Michaels Lane, Shenandoah Junction) as part of Levitt AMP Shenandoah Junction Music Series. Thursday, July 3, 7:30 pm, gates open 6 pm. Free. Info…

4th of July Parade — Celebrate Independence Day with a festive community parade down German Street in downtown Shepherdstown. Friday, July 4, 11 am. Free. Info…

4th of July Picnic — After the Shepherdstown parade, the Rotary hosts a community picnic with live music at Morgan’s Grove Park (4198 Kearneysville Pike, Shepherdstown). Food available for sale or bring your own. Friday, July 4, noon–3 pm. Free. Info…

Frederick’s Fourth — Music, food, activities, and fireworks in Baker Park (121 N. Bentz St., Frederick, MD). Friday, July 4, noon–10 pm. Free. Info…

Williamsport Fireworks — Celebrate Independence Day with live music, vendors, and fireworks at Byron Memorial Park (Park Rd, Williamsport, MD). Friday, July 4, starts at 5 pm, fireworks at dusk. Free. Info…

Boonsboro Independence Day Celebration — Live entertainment, food vendors, and fireworks at Shafer Park (37 Park Dr., Boonsboro, MD). Friday, July 4, festivities begin at 5 pm; fireworks at 9:30 pm. Free. Info…

Hagerstown Fireworks — Fireworks display at Fairgrounds Park (Hagerstown, MD). Bring a lawn chair or blanket and picnic (no alcohol allowed). Friday, July 4, fireworks at 9:30 pm. Free. Info…

Revolutionary Homestead Program — Explore 1770s-era frontier life and culture through living history demonstrations and presentations at the Conococheague Institute (12995 Bain Rd., Mercersburg, PA). All ages. Saturday, July 5 and Sunday, July 6, 10 am - 4 pm. Free. Info…

Steve Kish Magic — Family-friendly magic show at Sam Michaels Park (235 Sam Michaels Lane, Shenandoah Junction), part of the “Let’s Play at the AMP” series. Tuesday, July 8, 7 pm (gates open 6 pm). Free. Info…

Speak Stories: Michael D. McCarty — Storytelling event featuring nationally known teller Michael McCarty at Shepherdstown Presbyterian Church (100 W. Washington St.). Tuesday, July 8, 7:30 pm. $ Info...

Tell us about your event — email Explore@ObserverWV.com.


Correction: Harpers Ferry Mayor Greg Vaughn was mis-named in the June 26 issue of the Observer Weekly.


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