The state could end the fiscal year with a tax collection surplus of more than $270 million.  State Deputy Revenue Secretary Mark Muchow tells MetroNews that through May tax collections exceeded estimates by $273 million. He says that's a good sign for the end of the fiscal year coming up June 30.

"We knew we were going to be at least $200 million above estimate (for the fiscal year), I believe we will hold on to the $273 million and may go above that by the end of the year," Muchow said.

The driving forces behind the collection numbers have been income taxes and severance taxes. Muchow says those two areas make up 86 percent of the surplus in collections.

"Corporate taxes being up over 37 percent and severance taxes being up over a double-digit margin through the end of May indicate some positive growth," Muchow said.

Businesses in West Virginia, like in other states, were impacted by the recession, but Muchow says recovery has been better than expected.

"Certainly those numbers have surprised us on the high side," he said.

Severance tax collections hit a record amount in May at more than $65 million. The high demand and corresponding high price for coal pushed the collections nearly $40 million more than last year at this time.

Muchow says the state Road Fund is also benefiting in the current atmosphere with fuel tax collections and the taxes paid on new automobile purchases. Muchow predicts the Road Fund will finish at about $650 million for the fiscal year, which would be roughly $20 million more than the current budget year.

Coal production in the U.S. increased to 1,085.3 million short tons in 2010, according to preliminary data from the U.S. Energy Information Administration (EIA). U.S. coal consumption increased in all sectors except commercial and institutional (formerly commercial and residential), while coal stocks fell slightly.

Overall coal production increased by 1 percent in 2010. The Interior and Western regions increased production by 7.4 percent and 1.1 percent, respectively, while the Appalachian Region decreased 2.1 percent. An increase in Interior Region production was boosted by a 6.5 million short ton increase in Texas production. The Interior and Western regions produced 10.8 million short tons and 6.6 million short tons, respectively, in 2010.

Improvements in the U.S. economy led to an increase in the use of coal, along with a cold winter and warm summer in coal-consuming regions. Total coal consumption increased by 5.1 percent from 2009 levels to 1,048.3 million short tons. Coal-fired generation increased by 42 million short tons in the electric power sector and by 13.9 percent in all other sectors.