November 12, 2010
Governor Bob McDonnell announced Friday that October revenue collections increased by 3.7% over the prior year. This is the seventh month out of the last eight in which state revenue collections exceeded the previous year’s amount.
The revenue increase was primarily driven by individual withholding (+4%) and sales tax (+6.5%) collections. Individual withholding is a significant budget driver, and the year to date increase of 4.3% is exceeding the officially forecasted growth of 2.4%. Adjusted for the accelerated sales tax program, total state revenues grew 3.6% through October, slightly lagging the economic-base forecast of 4.2% growth.
Speaking about the latest revenue report, Governor McDonnell noted, “We have now seen seven of the last eight months feature increases in revenue collections, and this has occurred in tandem with a slight decrease in our unemployment rate. Clearly, these are signs of a modest turnaround in Virginia’s economy. Our unemployment rate is 6.8%, tied for the eighth lowest nationally and well below the national unemployment rate of 9.6%."
The October revenue numbers are available here.