State revenues continue upward climb
February revenue collections by the Commonwealth increased by 16.7 percent over the prior year. This is the 11th month out of the last 12 in which state revenue collections exceeded the previous year’s amount. It is the fourth month in a row in which year-over-year revenue growth was greater than 9 percent.
The revenue increase was primarily driven by withholding (+10.6 percent) and sales tax (+6.4 percent—this number reflects January sales) collections. On a year-to-date basis, total revenue collections have risen 4.1 percent, slightly ahead of the revised annual forecast of 4 percent growth. Adjusted for the accelerated sales tax program, state revenues have grown 6.2 percent, ahead of the forecast of 5.6 percent.
“We are continuing to see clear signs that Virginia’s economy has begun to turn the corner,” Gov. Bob McDonnell said today. “Last week, we announced that the seasonally adjusted unemployment rate in Virginia has fallen to a two-year low. Today, we are announcing another month of positive revenue numbers. The economic trend in the Commonwealth is positive and it is increasingly consistent.”