Richmond, Virginia – Governor Glenn Youngkin announced earlier this week that Virginia’s general fund revenues for May 2024 saw a significant increase of 14.2 percent compared to the same period last year. This increase keeps the revenues slightly ahead of the revised forecast that was approved as part of the budget on May 13, 2024, reinforcing the Common Ground budget forecasts.
“With more Virginians working than ever before, Virginia’s job market continues to fuel the economic engine of the Commonwealth,” said Governor Glenn Youngkin. “We are pleased with the underlying strength of Virginia’s business climate and job growth, but with inflation at the federal level remaining persistent we will continue to exercise caution in our forecast and planning.”
The state’s economic performance in May was particularly strong, exceeding the revised revenue forecast. Secretary of Finance Stephen Cummings highlighted the robust revenue growth throughout fiscal year 2024, supported by strong economic fundamentals.
“May was a strong month for revenue collections, with revenues exceeding the revised forecast,” said Secretary Cummings. “Throughout fiscal year 2024, revenue growth has exceeded expectations, supported by strong economic fundamentals, which gives us confidence in the near term. But, with stubbornly high inflation and the outlook for higher interest rates for longer, we will be closely monitoring conditions for any signs of weakening in coming months.”
With just one month remaining in the fiscal year 2024, the year-to-date collections are up by 5.9 percent, continuing to stay ahead of the revised forecast. This growth has been driven primarily by higher-than-expected net individual income tax collections.
The positive revenue trends highlight the resilience of Virginia’s economy and the effectiveness of the state’s economic policies. However, state officials remain vigilant about potential economic challenges posed by high inflation and rising interest rates.
For more detailed information, the full May 2024 revenue report is available here.
