Virginia sees revenue growth in August as projections exceed by over $100 million
Richmond, Virginia – Governor Glenn Youngkin announced earlier this week that despite having one fewer deposit day compared to August of the previous year, Virginia’s general fund revenues increased by 2.0 percent for the month. This growth, compared to the same period last year, puts the state’s revenue 8.0 percent ahead for the first two months of the fiscal year. Revenues for August exceeded projections by $114.0 million, while year-to-date figures are ahead of forecasts by $205.7 million.
Strong Financial Position for Virginia
“The Commonwealth continues to be in a very strong financial position,” Governor Youngkin stated. He credited the growth to the record number of Virginians working and emphasized the state’s consistent revenue stream, even in months like August, which typically don’t generate significant revenue. He also expressed cautious optimism as national financial factors, such as slowing job growth and potential Federal Reserve actions, are closely monitored. “Our focus remains on expanding opportunity in the Commonwealth for all Virginians,” Youngkin added.
Positive Outlook Supported by Economic Strength
Secretary of Finance Stephen Cummings also highlighted the strength of Virginia’s economy, pointing to a robust labor market and strong consumer spending as key contributors to the positive revenue trend. Nonwithholding collections were better than anticipated, further reinforcing the state’s solid financial standing.
“Although inflation appears to be moderating, the U.S. job market continues to slow,” Cummings noted. He added that while the early months of the fiscal year have shown promising results, it is still too early to predict full-year revenue trends with certainty. With payments from individuals, corporations, and insurance companies due in September, Cummings expects the next two months to provide a clearer picture of the fiscal outlook for 2025.
Looking Ahead to Fiscal Year 2025
As the state prepares for Fiscal Year 2025, the Department of Finance will continue its cautious and thoughtful forecasting process, refining its projections in the lead-up to the Governor’s introduced budget in December. Virginia’s financial team will closely watch upcoming revenue reports to ensure the state’s economy stays on track.
For more detailed information, the full August 2024 revenue report is available online.
