McDonnell: State revenues continue upward climb
This is the sixth month out of the last seven in which state revenue collections exceeded the previous year’s amount.
The revenue increase was primarily driven by withholding (+6.8 percent), corporate income (+13.8 percent) and sales tax (+2.1 percent) collections. Adjusted for the accelerated sales tax program, total state revenues grew 3.6 percent through September, lagging the economic-base forecast of 4.2 percent growth. However, adjusted total state revenue growth was 3.3 percent through August, demonstrating a positive direction in that number.
“The growth in revenue derived from withholding, corporate income and sales taxes is good news for the Commonwealth,” McDonnell said. “It demonstrates increased activity in key areas of our economy. While year to date revenue growth slightly lags the base forecast, that difference has narrowed over the past few reports.
“This monthly report has a number of positive components, but it in no way indicates that we have emerged from the economic downturn that has impacted every Virginian over the past two years. Credit remains too tight, and the unemployment rate remains too high. Any true and lasting economic recovery will only be possible through sustained private sector job creation and investment,” McDonnell said.
The September revenue numbers are available at this link: http://www.finance.virginia.gov/KeyDocuments/RevenueReports/FY2010-2011/2011ReportsList.cfm.
Edited by Chris Graham. Chris can be reached at email@example.com.