~Twelfth Month out of Last 13 with Increase in Revenue Collections over Prior Year; Follows 16.7 Percent Revenue Increase in February~ RICHMOND – Governor Bob McDonnell announced today that March revenue collections increased by 12.4 percent over the prior year. This is the twelfth 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,” Governor 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 governor continued, “While we can celebrate the recent good news for our economy and are pleased with the continued trend toward recovery that these numbers indicate, we cannot lose sight of the fact that this recovery is still fragile. More than 250,000 Virginians are still lacking good-paying jobs to support their families. For them, these numbers do not erase the daily struggles they are facing to make ends meet. That is why this administration will continue managing this state with a dedicated focus toward fiscal responsibility and will aggressively support programs that will allow private-sector job creators to grow their businesses in the Commonwealth and create good jobs. At the same time, we must address major fiscal challenges with Medicaid and the solvency of our pension systems in order to protect our economic well-being in the future.”
The March revenue numbers are available at this link: http://www.finance.virginia.gov/KeyDocuments/RevenueReports/FY2010-2011/2011ReportsList.cfm