April 16, 2012
Solid March general tax collections has put Virginia comfortably ahead of the revenue forecast on which the current state budget is based heading into the make-or-break final quarter of the fiscal year.
March receipts were 7.6 percent ahead of the same month last year thanks to fewer income tax refunds and strong sales and corporate tax collections.
Speaking about the March revenue report, Governor McDonnell noted, “This is a positive revenue report from a less significant month for state revenue collections. Sales tax receipts are up, and hopefully that reflects some improvement in overall consumer confidence, an important economic indicator. Also, corporate tax receipts grew in March, and that correlates with the improving jobs climate in the state. Unemployment is now at 5.7 percent, the lowest rate in over three years.”
The March growth marks the sixth consecutive quarter of state revenue growth. From the spring of 2008 through the March of 2010, Virginia posted eight consecutive quarterly decreases during the depth of the recession.
That along with February's 17 percent monthly jump in collections puts overall revenue growth at 5.3 percent to close out the third quarter of fiscal year 2012.
Budgeted spending through June 30 is predicated on overall revenues growing by 4.6 percent.
The March revenue numbers are available here.