McDonnell ups budget forecast by $152 million
- February 4, 2011
Gov. Bob McDonnell has increased revenues for the current biennial budget by $152 million as more small businesses hired employees.
McDonnell said the revised forecast showed increases in individual withholding, non-withholding and refunds. Individual withholding increased 5.2 percent over the past year, while the budget predicted an increase of 3.4 percent.
McDonnell suggested that the additional revenue by used in the following ways:
- $50 million for the state’s “rainy-day fund”
- $37.8 million to eliminate accelerated sales tax this June for 75 percent of merchants currently paying the accelerated sales tax. (law requires the policy to be ended by 2013).
- $37.5 million to prepay one-half of the annual repayment to the Virginia Retirement System because of the deferral of employer contributions in the current budget.
- $7.5 million to defer to defer for another year some income from Virginia corporate restructurings.
That leaves about $19.2 million for General Assembly members to use elsewhere.