Augusta Free Press

Governor announces additional revenues available from new revenue forecast

Governor McAuliffe announced today an additional $136 million in state budget revenues as a result of the final mid-session analysis, which was completed after the Commonwealth’s books closed on February 9.

February’s monthly close provided additional data on retail sales tax collections for the holiday shopping season as well as the second component of the final calendar year individual income tax estimated payment. The revenue adjustment is in addition to the $338 million revenue increase the Governor announced to the General Assembly earlier this month.

“While we still have a responsibility to be cautious stewards of taxpayer dollars, our improving revenue picture is great news for our Commonwealth,” said Governor McAuliffe. “These additional revenues will allow us to fund a pay raise for Virginia public school teachers that is equal to what other state employees receive and to restore investments in key priorities that have been cut. Finally, I hope my colleagues in the General Assembly will take the prudent step of reserving a portion of these new revenues for the Rainy Day Fund, which has been essential to our ability to weather our recent budget difficulties. Our job creation and economic development efforts are clearly bearing fruit and creating new budget opportunities, but we still have a lot of work to do to grow and diversify a new Virginia economy.”

 

Additional Mid-Session Revenue Adjustments

 

Total Mid-session Forecast

Combined with the revisions from the February 6th preliminary mid-session meeting with the money committee chairmen, the revenue forecast is being revised upward by a biennial total of $474.0 million.

However, since most of the revisions are in sources that are certified tax revenues sources that fund the revenue stabilization fund, the Governor and General Assembly must take into account how these total increases will affect the deposit to the fund in the next biennium.  Preliminary calculations for the revenue stabilization fund indicate that approximately $300 million will be required to be deposited in fiscal year 2017.  The formula does not require a deposit for fiscal year 2018 based on the revised mid-session forecast.

Governor McAuliffe reported these additional revenues at a meeting with the money committee chairmen this morning.

In addition to providing additional resources, the Governor made several recommendations on allocating these resources. Among his requests were:

The Governor will meet with the Budget Conferees on Tuesday morning for further discussions on the budget process.