Gov. Bob McDonnell announced Wednesday that the Commonwealth of Virginia has posted a preliminary revenue surplus at the conclusion of the 2010 fiscal year on June 30.
The surplus, after miscellaneous interest payments are distributed, will be at least $220 million, according to new estimates. The primary source of the surplus comes from individual withholding and non-withholding and corporate income tax receipts. As of January, the Commonwealth faced a $1.8 billion budget shortfall for the remainder of FY 2010. Working together, Gov. McDonnell and the General Assembly closed this shortfall during the 2010 legislative session.
The final figure for the surplus will be made official in August when all year-end adjustments are made and the governor appears before the joint money committees of the General Assembly. Today’s announcement comes just months after the Commonwealth’s budget shortfall of $4.2 billion in the FY 2011/2012 budget was also closed through spending reductions, without a tax increase.
“Just six months ago, we faced a $1.8 billion shortfall in Virginia’s budget for the remainder of fiscal year 2010. When the General Assembly convened, I made it clear that we would not balance Virginia’s budget by making it harder for Virginians to balance their own. Through bipartisan cooperation, we made tough realistic decisions and closed that shortfall without a tax increase,” McDonnell said in a statement.
Edited by Chris Graham. Chris can be reached at [email protected].