Governor Bob McDonnell announced today that May revenue collections increased by 17.9 percent over the prior year. This is the fourteenth month out of the last 15 in which state revenue collections exceeded the previous year’s amount. It is the sixth out of the last seven in which year-over-year revenue growth was greater than 9 percent.
The revenue increase was primarily driven by a 49 percent increase in nonwithholding receipts (individual final payments based on 2010 tax liabilities). On the other hand, growth in two large sources, payroll withholding and sales tax, slowed. On a year-to-date basis, total revenue collections have risen 5.8 percent, slightly ahead of the revised annual forecast of 3.5 percent growth. Adjusted for the accelerated sales tax program, state revenues have grown 7.3 percent, ahead of the forecast of 5.5 percent.
Speaking about the latest revenue report, Governor McDonnell noted, “The growth in state revenue is a positive sign that Virginia’s economy continues to improve. However, while 17.9 percent revenue growth is great news, it does not mean we have fully turned the corner from the deep and long-lasting recession that has impacted every Virginian. Like some national economic indicators, our payroll withholding and sales tax collections slowed last month. This means there is still much work to be done before we find ourselves with the full and robust economic recovery our Commonwealth and nation needs.”
The governor continued, “Even though our revenue collections continue to increase month after month, too many Virginians are still out of a job. That is unacceptable. We must work to ensure that every Virginian can find a good-paying job to support their families and afford the goods and services they need to live a healthy, happy life. While more Virginians are back to work, families and businesses still face high gas prices and increasing commodity prices, forcing them to tighten their belts. Just as families are doing, our administration will continue to reign in government spending, better utilize hard-earned taxpayer money, and exercise fiscal responsibility in managing the state. At the same time, we remain committed to putting in place aggressive policies that encourage economic growth, help bring private sector jobs to every region of this state, and get our economy turned around for good.”
The May revenue numbers are available at this link: http://www.finance.virginia.gov/KeyDocuments/RevenueReports/FY2010-2011/May2011RevenueLetter.pdf
Wednesday, June 15, 2011
Virginia posts 17.9% revenue growth in May
From Governor Bob McDonnell's office: