State tax revenues in West Virginia rebounded in May, but not by enough to ensure a hoped-for surplus of at least $100 million.
General revenues for the month topped $328 million, which is $12 million above the May forecast.
The state now has $59 million more than expected this budget year, but the year ends June 30, and officials were hoping for a $100 million surplus.
The next budget is counting on $65 million from the surplus to fund Medicaid properly.
Officials say the revenues figures show that West Virginia's economy continues to grow. But they also reflect a decline in the key energy sector.
Revenues from coal and natural gas beat their projection last month, but they are down when compared to last year. Officials expect that to worsen next year.