Each year the West Virginia Center on Budget and Policy releases our annual State of Working West Virginia report, which examines the Mountain State’s economy through the lens of its workers—the people who power our state and economy. While each year’s report has a slightly different focus, one consistent theme is the need to ask this simple question: How are the people who do the work faring?
This year’s edition, the 18th installment in our State of Working West Virginia series, gives an overall picture of the state’s workforce, with a deep dive into the state of the public sector workforce, made up of local, state, and federal government employees. We wanted to zero in public sector workers, given that they are under fire— at the federal level with DOGE cuts, funding freezes, and mass layoffs, and at the state and local levels amid the pressures of a shrinking state budget and a slowing economy. Despite all that, public sector workers are essential to the lives of West Virginians each day: teaching and caring for our children, building and maintaining our roads and infrastructure, responding to floods and fires, and helping families access programs like SNAP and Medicaid.
With 151,100 West Virginia workers employed by the public sector, including 26,600 federal employees, 46,700 state employees, and 77,800 local employees, the public sector is the largest of the state’s major employment sectors. While the public sector is a larger employer in West Virginia than in most other states, public sector employees face relatively low wages—particularly for college graduates and teachers—compared to workers in other states.
The public sector is a critical source of jobs at the county level. Local government jobs in particular are important in many counties, with county boards of education often among the largest employers in a given county.
Many of the demographics of the public sector are like those of the private sector in the state. One major difference between the public and private sectors pertains to gender. The public sector is an important source of jobs for women in West Virginia, with women making up over 58 percent of public sector jobs, compared to just 34 percent of private sector jobs.
Public sector employment has experienced different rates of growth in 2025 at the federal, state, and local levels. Public sector employment growth has lagged the overall state average, in part due to a shrinking state budget despite large revenue surpluses, as the state has prioritized income tax cuts over investments in state needs.
While this year’s edition of the report centers on West Virginia’s public sector workers, it also looks into the state’s economy as a whole, presenting a mixed picture. While a strong recovery post-pandemic saw jobs quickly return, that growth stagnated in 2024. Instead of building on this robust recovery, West Virginia saw its growth lag the rest of the country, with most of the state’s growth occurring within the health care sector. West Virginia ranked near the bottom in several important economic indicators in 2024, including job growth, wages, and labor force participation.
Policies that give workers more power, put more money in the pockets of working families, promote public health, and strengthen the public sector will benefit all West Virginians. Our report concludes with the following policy recommendations that address weaknesses in the state’s economy and can improve the lives of families and workers more broadly:
Read Sean’s full report.
Watch Sean’s video highlighting some of the report’s key findings.
Check out Sean’s Halloween video from last week sharing additional findings on the spooky state of West Virginia’s economy.
People across West Virginia are already suffering severe consequences from the ongoing delay in SNAP benefit distribution as the government shutdown drags on.
One in 6 West Virginians rely on SNAP to help put food on the table. That’s more than 270,000 of our friends and neighbors, including nearly 100,000 children, who are now faced with legitimate worry about whether and when their food assistance will be available this month. Meanwhile, President Trump has said he will defy court orders so he can continue weaponizing hunger.
Let’s be clear: The Trump administration could have, and should have, taken steps weeks ago to get food assistance to families in need. Now, hungry West Virginians and folks across the country are paying the price for the Trump administration’s cruelty, lawlessness, and recklessness.
Join us and our colleagues at MAZON as we urge members of Congress to pressure the Trump administration to immediately provide full SNAP benefits for all those in need. You can send them a message here.
Has the delay in November SNAP benefits impacted you and your family? Please consider filling out our survey to help us better understand how Mountain State households are being affected. We plan to use what we learn from responses to inform the public, the media, lawmakers, and other stakeholders about the importance of getting FULL SNAP benefits out to households as soon as possible.
Read Kelly’s recent op-ed on the urgent need to fully fund SNAP benefits.
West Virginians who get their health coverage through the Affordable Care Act’s (ACA) Marketplace are beginning to see just how much Congress’ inaction will cost them next year. As the state with the highest commercial health care costs in the country, West Virginia is among the states most impacted if Congress fails to extend the ACA’s enhanced premium tax credits that help make health coverage affordable for households who do not qualify for insurance through an employer, Medicare, or Medicaid. Approximately 60,000 West Virginians are beginning to receive notice of huge premium spikes, which will exacerbate health care costs for families already feeling the brunt of rising costs from inflation and is expected to result in many forgoing health coverage altogether.
The Centers for Medicare and Medicaid Services (CMS) recently opened up the window shopping function on healthcare.gov, the ACA Marketplace, which allows consumers and the public to see for the first time apples-to-apples comparisons of 2025 health insurance premiums for households-when enhanced subsidies were still in effect-and 2026 health insurance premiums without those subsidies in effect, as Congress thus far has failed to act to extend them.
The WVCBP’s analysis found that households of all sizes and incomes will see their monthly insurance premiums spike dramatically, in some cases increasing ten-fold for the same benchmark plan in 2026. On average, West Virginia households will see their premiums more than double, increasing by 133 percent. Those most impacted are older households (between 60-64 years old) and those above 400 percent of the federal poverty level, who would see their subsidies end entirely.
Read Kelly’s full blog post.
Learn more in these recent articles featuring additional insight from Kelly.
Marketplace open enrollment is now open, and time is running out for the tens of thousands of West Virginians who rely on expiring enhanced premium tax credits to afford their health coverage.
Congress must act now. If they fail to do so, millions across the country will face unaffordable premiums and coverage loss. You can send a letter to your Senators and Representatives asking them to make the enhanced tax credits permanent, reverse health care cuts, and lower health care costs here.
Check out this video from WVCBP health and saftey net policy analyst, Rhonda Rogombe, to learn more about the current landscape. You can find additional details in her recent publications here and here.
Are you impacted and wondering what this means for you? Use the APTC savings calculator to see how much more you might have to pay if Congress fails to extend these credits. Access the calculator here.
Taxing the proceeds generated by wealth – such as capital gains, dividends, and passive business income – through a new Wealth Proceeds Tax that mirrors the federal Net Investment Income Tax (NIIT) is a simple, shovel-ready way for West Virginia to raise tens of millions in new state revenue, fund vital state programs, and improve the fairness of the tax system, according to a new report by our colleagues at the Institute on Taxation and Economic Policy (ITEP).
States have an untapped opportunity to tax extremely wealthy households. The federal government already defines what counts as wealth-derived income, so states can easily adapt that framework to make their tax codes fairer and more robust.”
Key Findings
Creating a state Wealth Proceeds Tax is simple. West Virginia can piggyback on the federal Net Investment Income Tax (NIIT), which is a 3.8 percent levy on the investment returns of high-income households first implemented in 2013. Using the NIIT as a starting point allows states to design new taxes with minimal administrative burden and maximum impact.
Enacting a Wealth Proceeds Tax would create a new, stable funding source for state lawmakers to invest in programs that strengthen today’s workforce and the next generation of West Virginians. As just one example, lawmakers have made clear the need for more investment in our early childhood education programs, and the Wealth Proceeds Tax can provide much of the revenue they need to make that priority a reality, while simultaneously making our tax system more equitable.
Nationwide, nearly three-quarters of all Wealth Proceeds Tax revenue would come from millionaires, and households with incomes under $250,000 for married couples (or $200,000 for single filers) would not pay the tax.
Taxing wealth-derived income would improve tax equity, reduce inequality, and provide a new, consistent revenue source for West Virginia.
For too long, our tax systems have favored wealth over work. A State Wealth Proceeds Tax in West Virginia would take a major step toward correcting that imbalance.”
Read ITEP’s full report.
The Hope Scholarship is a school voucher-style program that diverts taxpayer funds to families to cover private school or homeschool-related costs. Research shows that these types of programs harm public schools by siphoning public funds that could otherwise be used for supporting and improving public schools while simultaneously benefiting wealthy families and those whose children already attend private schools or homeschool. A recent article, including insight from WVCBP education policy fellow Tamaya Browder, explores some of the adverse impacts of the Hope Scholarship in Marshall County and broader concerns about the program’s lack of regulations. Excerpt below:
The HOPE Scholarship in West Virginia, offering up to $5,400 per student annually, is sparking debate as it impacts public school funding.
With nearly $250 million allocated to the scholarship each year, more students are opting for private schools, leaving public schools facing uncertainty.
And officials say that’s chipping away at public education.
“The money follows the student and there are fixed costs that are left behind,” West Virginia State Board of Education Treasurer Scott Rotruck said.
“It begs the question long term — can we afford to fully fund adequately two systems?” he asked.
The HOPE Scholarship has been a major conversation during this year’s meetings.
“Half of our citizenship lives in border counties, shares a life, an economy with the five states that surround us primarily,” Rotruck said. “But we also have a lot of people that don’t have an option for private school. That don’t even apply. So, you’re going to find this happening in pods, whereas public education is all across 55 counties.”
And studies are already reflecting that.
The West Virginia Center for Budget and Policy attributes widespread school consolidations to declining enrollment, expired federal relief funding, and the HOPE Scholarship.
“This year alone, the program is expected to cost about $110 million. That could be $110 million spent toward our public school system,” said Tamaya Browder, an education policy fellow.
In Marshall County, Superintendent Shelby Haines reported a decrease in student population, with over 100 students applying for the scholarship annually.
“And I believe that if you speak to any other superintendents in the state of West Virginia, they will probably tell you the same,” she said.
But they say it’s not just students who are reaping the effects.
“Making sure that we are funding for enough staff members, that we have enough teachers in classrooms,” Browder said.
Another hurdle is where the scholarship money is being funneled. As of this year, it is not a requirement to use the funds at an accredited institution.
“So, we do have West Virginia taxpayer dollars that are going outside of our state and they’re also going to unaccredited schools,” Browder said.
“They may not have certified teachers, they may not be financially stable. So, there’s a chance that we might be paying into schools that may not even be in operation next school year.”
Looking at the HOPE Scholarship’s annual report, we found that $32,000 was allocated to Steubenville City Schools.
Not only is that not in West Virginia, it’s a public school.
“And that’s quite worrisome, from my point of view, for the educational budget,” Haines said.
In the 2023-2024 academic year — eight states saw nonpublic school payments totaling over $17.2 million — most in West Virginia, but others in Florida, Kentucky, and New Mexico.
Read the full article.
Check out the WVCBP’s public school closure tracker page.
Following 10 years of Summer Policy Institute, we’re excited to announce our inaugural Fall Policy Institute!
Join us for “Lunch and Learn” workshops happening between now and December and an in-person advocacy day at the State Capitol on December 7.
Workshop topics include:
You can register for any or all of the free virtual events here.
Jackson, Calhoun, and Nicho;as counties! Do you have questions about how federal funding changes will impact health care in your community?
Join the WVCBP for a community conversation where you can:
You can find details about date, time, and location for the respective community conversations in the flyers below. At each event, a presentation will be provided by WVCBP staff.
You can RSVP for the Jackson County event here, the Calhoun County event here, the Craigsville (Nicholas County) event here, and the Summersville (Nicholas County) event here.
For more info, please email our community engagement coordinator, Alex.
Do you have questions about how recent federal funding changes will impact health care access and your community?
The WVCBP is here to help. We are offering to host community conversations for concerned community members to:
If you are interested, please fill out this form and we will be in contact with you about scheduling a community meeting near you!
