Virginia sees revenue growth in August
- September 14, 2010
The state’s August revenue collections increased by 5.3 percent over the previous year, the governor’s office said Tuesday. However, when adjusted for an accelerated sales tax program, the boost — driven primarily by withholding and sales tax collection — drops to 3.3 percent in August, lagging an economic forecast of 4.2 percent growth.
The good news: this was the fifth month out of the last six in which state revenue collections exceeded the previous year’s amount.
“The increase in revenue collections this August is a small, but positive, sign for Virginia’s economy, especially in light of the performing of withholding receipts, the largest source of revenue for the general fund,” Gov. Bob McDonnell said in a statement. “However, this remains a tough fiscal environment overall.”
Year-to-date, the state slightly trails its revenue forecast. McDonnell says September’s numbers will shed more light on the revenue picture, and what impact it will have on the state’s biennial budget.