Virginia has experienced an increase in revenue collections in 11 of the last 12 months. February was the fourth consecutive month that year-over-year revenue growth was at least ten percent. In a press release from the Governor’s office, he said, “Last week, we announced that the seasonally adjusted unemployment rate in Virginia has fallen to a two-year low. Today, we are announcing another month of positive revenue numbers. The economic trend in the commonwealth is positive, and it is increasingly consistent.”
The press release also states, “The revenue increase was primarily driven by withholding (+10.6 percent) and sales tax (+6.4 percent—this number reflects January sales) collections. On a year-to-date basis, total revenue collections have risen 4.1 percent, slightly ahead of the revised annual forecast of 4 percent growth. Adjusted for the accelerated sales tax program, state revenues have grown 6.2 percent, ahead of the forecast of 5.6 percent.”
However, Gov. McDonnell did point out that the numbers do not mean much to everyone in Virginia. He said, “While we recognize the recent good news, we cannot lose sight of the fact that this recovery is still fragile and early. Until every Virginian can find a good-paying job to support their family, our work is not over.”
Secretary of Finance Richard Brown reported on March 15 that the total general-fund revenue is up 16.7 percent. He pointed out that although February is not a “significant month for revenue collections,” total net collections in the eight months ending on February 28 did rise somewhat above the predicted 4 percent by rising 4.1 percent.