Northam announces $730.2M state revenue forecast increase
Va. revenues to jump to $46.7B over next two years
Gov. Ralph Northam’s revised budget released Monday shows that the commonwealth expects a $730.2 million increase in this year’s revenues forecast over December 2020, from $46 billion to more than $46.7 billion during the next two years.
“These revised budget numbers tell us that Virginia’s economy continues to thrive, in spite of the pandemic,” Northam said in a statement. “Before the pandemic, we had passed the most progressive budget in Virginia history. These additional dollars help us get back to that historic budget and allow us to move forward with our shared priorities — providing Virginia families and businesses the relief they need to get back on their feet, supporting public schools and giving our public workers a pay raise.”
Estimate for total revenues and transfers for fiscal year 2021 will be increased by $410.1 million while fiscal year 2022 total revenues and transfers will be revised by an extra $320.1 million. Northam said in a letter to the General Assembly Money Committees that the adjustment is based on the trend of actual revenue collections year-to-date and includes a reevaluation of the sales tax forecast.
Total revenue collections rose 6% through January on a fiscal year-to-date basis, which was well ahead of the 1.2% growth forecast, according to figures released Feb. 11.
“Our economy is rebounding and is generating growing revenues to fund services that Virginians expect – from public schools to salaries for public workers and much more,” Northam wrote in his letter released Monday.