Northam announces $292.5M revenue windfall
$112.3M must go to the 'rainy day fund'
A mid-session revised revenue forecast has resulted in the state government projecting a windfall of $292.5 million in additional revenues for fiscal year 2020, which ends on June 30, Gov. Ralph Northam said in a letter on Friday to the General Assembly Money Committees.
According to state statute, $112.3 million of that $292.5 million is required to be deposited in Virginia’s “rainy day fund.” Northam’s Mid-Session Revenue Review report indicates that the General Fund revenue increase is the result of real GDP growth in fiscal year 2020 from 1.9% to 2.1%.
Between January 2019 and January 2020, Northam says in his letter, revenues rose 8.7% and the state is trending ahead of the revenue forecast for 2020
In his letter, Northam urged legislators to appropriate the additional revenues in fiscally responsible ways and to focus on his proposed educational spending initiatives to increase access to early childhood education, increase teacher pay and fund job-training programs for low-income community college students.
“As you and your colleagues advance your budget deliberations,” Northam says in his letter, “I urge you to focus on two key priorities: maintaining Virginia’s fiscal integrity and investing in our future. These are generational investments in areas that have long been neglected. Fully funding these programs will be critical to our long-term success.”
By Feb. 16, committees responsible for budget bills must complete work by midnight. Feb. 26 will be the last day for each house to act on the budget and revenue bills of the other house.