CHARLESTON — Despite tax collections coming in slightly below estimates for the first half of fiscal year 2020, January started out the second half of the fiscal year in the black due to changes in estimates and a one-time infusion of money.

Lawmakers are still concerned about the budget deficit going forward.

According to numbers released by Gov. Jim Justice, January brought in $437.5 million in tax collections, which was $13 million above estimates and $15.1 million above collections for January 2019. The January tax collections came in 3 percent above estimates.

“Our numbers continue to show that West Virginia is in good financial health, pacing very close to last-year’s record-breaking numbers,” Justice said in a statement. “That said, we must continue to be conservative in our budgeting, so I encourage the Legislature to continue monitoring these numbers just like Secretary Hardy and I will.”

The positive numbers for January brought the year-to-date tax collections to $2.641 billion, which is $20.4 million below estimates. January’s numbers helped reduce West Virginia’s budget deficit to .77 percent below estimates.

Helping bring in the extra revenue was corporate net income tax and consumer sales tax collections. The consumer sales tax brought in $128.4 million, which was $3.7 million more than estimated, or .94 percent. Compared to the previous year, January consumer sales tax revenue was 2.95 percent more. Year-to-date collections of $742.7 million are running 1 percent ahead of estimates, though 6.84 percent below the same period last fiscal year.

Year-to-date corporate net income tax collections of $108.6 million came in 42.23 percent ahead of estimates and 4 percent ahead of last year’s receipts. January collections were $11 million, while the estimate was $1.5 million for the month.

“This marks the second month in a row that our shortfall has decreased,” said Dave Hardy, secretary of the state Department of Revenue. “We’re seeing positive momentum in a lot of areas — like our corporate net income tax being more than 60 percent above last year’s receipts.”

January’s numbers are also due to two factors: Justice lowered the revenue estimates for the rest of the fiscal year following his Jan. 8 State of the State address, with January revenue estimates lowered by $6 million; and $20 million from the State Treasurer’s Office from unclaimed property and banking services. Subtract the $26 million and January would have ended $13 million below estimates.

Senate Finance Committee Chairman Craig Blair, R-Berkeley, said he was watching the situation closely as both the state Senate and House of Delegates work together to craft the budget for fiscal year 2021 starting in July.

“Collectively for the year, yes we’re down. Could it get worse? Yeah, it could get worse. It could get better too,” Blair said. “I think in the long-run we’re still on course. I think maybe the budget numbers were too high last year, but it is what it is for now.”

Speaking Monday afternoon, House Finance Committee Chairman Eric Householder, R-Berkeley, called on Justice to institute a mid-year budget cut of between $70 million and $100 million. The Department of Revenue last fall called on state agencies to prepare scenarios for a 4.6 percent budget cut, though officials have said they didn’t see a need for the cuts after all.

“I know I and Senator Blair have been calling for the Governor’s Office to be proactive, and I think now is the time that maybe we should enact a mid-year budget cut,” Householder said. “Like always, it’s better to be proactive than reactive. If we’re reactive and the money comes in the later part of the spring, we can always issue supplemental appropriations to give money back.”

During remarks at the end of the state Senate floor session, Senate Minority Leader Roman Prezioso, D-Marion, criticized the Governor’s Office for playing games with the revenue numbers. A former chairman of the Senate Finance Committee, Prezioso said Justice was “playing around.”

“We don’t print money, but the Governor can play around with the estimates any way he wants to,” Prezioso said. “If it wasn’t for the $6 million lowering the revenue estimate for January and the gift from the Treasurer of $20 million — which are one-time money — we would deduct our current dilemma from January and we’d be $13 million below revenue estimates. It’s amazing the Governor in his State of the State painted a very rosy picture, but when we see the numbers it’s a totally different thing.”

Once again, severance tax collections from coal mining and natural gas production continue to lag below estimates. January brought in $20.4 million in severance taxes, $800,000 below estimates for the month and 33 percent below January 2019 collections. Year-to-date severance tax collections were $157.5 million, 19.8 percent below year-to-date estimates. Hardy said people should look beyond the downturn and see the positive.

“This momentum is occurring despite the loss of thousands of jobs due to the halting of pipeline construction, and our year-to-date severance tax collections coming in 34 percent below last year,” Hardy said. “These numbers show, more than anything, that West Virginia’s economy is diversified and set up for future success.”