Gov. Bob McDonnell announced today that October revenue collections increased by 3.1 percent over the prior year – the 19th month out of the last 20 in which state revenue collections exceeded the previous year’s amount.
With the McDonnell administration preparing its first biennial budget, though, the governor’s office is trying to sound a political alarm about money issues even with the continued good news about the state economy.
“While Virginia’s economy continues to grow and recover from the economic challenges of past years, that rate of growth has slowed somewhat in recent months. All indicators at the state, national and global levels continue to urge caution as our economy struggles to regain its footing,” McDonnell said.
Actually, all indicators at the state level are positive. On a year-to-date basis, total revenue collections have risen 5.8 percent, ahead of the revised annual forecast of 3.7 percent growth. Adjusted for the accelerated sales tax program, state revenues have grown 5.0 percent, ahead of the economic base forecast of 3.5 percent growth.
“Virginia’s economy is showing modest growth and signs of improvement that surpass those of the nation’s economy as a whole, but the fragile national economy, persistent uncertainty in federal funding of programs that directly impact the states, and our economy’s vulnerability to upheaval due to national and world events requires economists and elected officials to take a conservative, responsible fiscal approach when budgeting for the future,” McDonnell said.
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