March revenue collections by Virginia state government increased by 12.4 percent over the prior year. This is the 12th month out of the last 13 in which state revenue collections exceeded the previous year’s amount. It is the fifth month in a row in which year-over-year revenue growth was greater than 9 percent.
Although March is typically not a significant month for revenue collections, most major revenue sources contributed to the continued growth this month, such as withholding (+.6 percent) and sales tax (+8.5 percent—this number reflects February sales) collections. On a year-to-date basis, total revenue collections have risen 4.9 percent, slightly ahead of the revised annual forecast of 4 percent growth. Adjusted for the accelerated sales tax program, state revenues have grown 6.7 percent, ahead of the forecast of 5.6 percent.
“For the fifth month in a row, we are seeing revenue growth over 9 percent, clearly indicating that Virginia’s economy is on the path toward recovery,” Gov. Bob McDonnell said. “We have made significant progress in providing a positive pro-business environment in Virginia that attracts companies from around the country and the world to locate and create jobs here. Our strong economic development programs, educated and skilled workforce, and our high quality of life make Virginia the top state in the nation in which to do business.”
The March revenue numbers are available at this link: www.finance.virginia.gov/KeyDocuments/RevenueReports/FY2010-2011/2011ReportsList.cfm.
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