McDonnell blasts Washington ‘ineptness’ for hurting state revenue
Virginia’s September revenue collections rose by 2.6 percent from the same month last year. Gov. Bob McDonnell, however, warned that future revenue growth may be threatened by the partial federal government shutdown.
“Unfortunately, the efforts we’ve undertaken in Virginia to make government function better, and use limited state resources wisely to improve the quality of life of our citizens, are being undermined daily by the dysfunction in Washington D.C.,” he said in a statement.
“The ongoing federal government shutdown will have a direct negative impact on state revenues in the months ahead, just as it is already having a direct, negative impact on Virginians in their daily lives,” he said. “The success of our Commonwealth is being threatened by the ineptness of Washington. I continue to call on leaders in both parties to reopen the federal government immediately and come together to find solutions to the challenges facing our great nation.”
The partial government shutdown began on Oct. 1 after September state revenue was recorded.
On a year-to-date basis, total revenue collections have increased 2.8 percent through September, ahead of the annual growth forecast of 1.5 percent growth.
Adjusting for the accelerated sales tax program and the 0.125 percent sales tax transfer required by last session’s transportation funding bill, total revenues grew 3.5 percent through September, ahead of the adjusted forecast of 1.4 percent growth.
The governor’s office said September is a significant month for revenue collections because in addition to normal collections, the state also receives the first estimated income tax payment from individuals and corporations.