Virginia state revenues $778M ahead of official forecast
Virginia reached the end of fiscal year 2019 with a sizable revenue surplus. Total collections rose by 7.2 percent in fiscal year 2019, ahead of the revenue forecast of 3.3 percent growth.
“With revenue collections coming in at $2.4 billion for the month, I am happy to announce that preliminary figures indicate that the state concluded the year with a general fund revenue surplus of approximately $778 million,” said Gov. Ralph Northam. “Since I took office in 2018, we have worked to diversify Virginia’s economic base and make strategic investments in key fundamentals like health care, infrastructure, workforce development, and education.”
The main drivers of the revenue increase were nonwithholding income tax collections and lower individual income tax refunds—these two sources contributed $831 million to the surplus. The majority of the surplus can be attributed to an estimated $450 million from the federal Tax Cuts and Jobs Act (TCJA) that was anticipated but not included in the official General Fund Revenue forecast.
“While we are pleased with the revenue performance, it was expected based on federal tax law changes,” said Secretary of Finance Aubrey Layne. “Provisions in the Virginia Constitution, the Appropriation Act, and the Code of Virginia specify how most of the fiscal year 2019 additional resources must be assigned, including a one-time taxpayer relief refund to individuals.”