State revenues down in December
The governor’s office announced today that December revenue collections decreased by 4.7 percent over the prior year. A press release from the McDonnell office noted calendar abnormalities with December only having four Wednesdays this year versus five Wednesdays last year, with Wednesdays being a significant day for individual withholding payments, accounting for most of the lower numbers.
On a year-to-date basis, total revenue collections were up 4.2 percent, slightly behind the revised annual forecast of 4.6 percent growth. Adjusted for the accelerated sales tax program, state revenues have grown 3.7 percent, trailing the economic base forecast of 4.7 percent growth.
“Virginia’s economy continues to grow and recover from the economic challenges of past years, but the rate of growth has slowed. December’s falling revenue numbers are by no means a cause for panic, but they do call for a continuation of a conservative fiscal approach as the General Assembly considers my proposed biennial budget ,” McDonnell said in a statement.
The Commonwealth issued its general fund revenue forecast in December, revising total general fund revenues to grow by 4.6 percent in fiscal year 2012.