Morrisey says outside audit revealed $168M in potential savings by cutting costs in 3 state agencies

by Amelia Ferrell Knisely, West Virginia Watch
May 18, 2026

Gov. Patrick Morrisey said an outside audit on state agencies has revealed a potential $168 million in savings of taxpayer dollars.

He said $9.9 million of that total in potential savings included changes like retiring used state vehicles, which brought $1.6 million in savings, along with switching to some virtual meetings and having the National Guard mow their own lawns.

The governor has been focusing on weeding out “wasteful spending” in state government since taking office last year, issuing an executive order that asked agencies to review their spending to highlight inefficiencies.

“We believe we’ve identified up to $168 million of potential savings. A lot of that is not easy to implement,” Morrisey said on Monday at the state Capitol during a news conference.

Other yearly cost-saving measures noted by Morrisey included: shutting down an unnecessary data center to save about $856,000; having the National Guard hire civilian firefighters to save about $400,000; and cancelling unused cellphone lines to save about $87,000.

An outside company, BDO USA, conducted performance evaluations of three state agencies — Homeland Security, the Department of Transportation and the Department of Human Services. Morrisey said these were “the largest and most challenging departments.”

The state paid around $1 million for the audits, Morrisey said. BDO recommended a list of potential cost-saving measures for the three agencies.

Among potential savings for Homeland Security, Morrisey said the state could save $1.9 million annually by requiring that state corrections officers wear body cameras, which would provide a record of events in jails. There was no cost named for equipping corrections officers with body cameras.

“​​Using these body cameras impacts behavior,” the governor said. “We think that might lead to less litigation, and obviously you’ll have the transparency, because we think the people won’t make up some of the allegations that may be out there.”

Recommendations for the Department of Transportation include a potential savings of $33 million by improving contractor and oversight accountability and additional savings by using less consultants. Overall, proposed changes in this department could save about $50 million annually.

“We’ve identified about $50 million that might be able to be retained — that’s more money back for roads,” Morrisey said. “Potholes and roads, that’s where it’s going, and that’s really, really important.”

Issues and financial murkiness within the Department of Human Services have plagued lawmakers for years, despite the Legislature breaking up the former massive Department of Health and Human Services in 2024 in an effort to get a better look at spending.

Morrisey said they hope to save $68 million with changes that include replacing outdated technology, cutting down on mailings to residents and fixing the Medicaid verification process to make sure it goes to people who are qualified for the insurance program.

He hopes to save $25 million over time by bringing out-of-state foster children back to West Virginia. More than 500 children are currently out of state, and they mostly live in group homes.

Lawmakers recently vetoed a Morrisey-backed bill to renovate state-owned buildings for house children in state; the plan lacked details on how the state would deal with a widespread shortage of children’s psychologists and behavioral health supports.

“We’re paying so much more than the average kid, because we’re sending them to far away places, because we haven’t had the infrastructure in the state to be able to deal with that,” Morrisey said. “I’ve been given statistics that sometimes the average cost of those complex cases are about $160,000 per person.”

At the end of the news conference, Morrisey said that the Temporary Assistance for Needy Families, a federal block grant that pays for several children’s programs in West Virginia, is operating at a projected $43 million deficit. Program spending ballooned in the wake of federal pandemic dollars, he said, but those federal dollars have expired.

It could result in changes to that program, including cuts in the state’s child care subsidy program and clothing voucher program for low-income families.

Morrisey said that he plans to discuss with lawmakers pending changes to TANF.

West Virginia Watch is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. West Virginia Watch maintains editorial independence. Contact Editor Leann Ray for questions: info@westvirginiawatch.com.