Governor Youngkin announces higher-than-expected revenue growth for Virginia in September
Richmond, Virginia – Governor Glenn Youngkin announced a significant increase in Virginia’s general fund revenues, revealing a 12.4 percent rise in September compared to the same month last year. Additionally, total revenues for the first three months of Fiscal Year 2025 are up by 9.9 percent from the same period in the previous year, demonstrating the state’s solid financial footing.
Compared to the Fiscal Year 2025 budget forecast, the state collected $395.8 million more than projected in
Virginia Reports Strong Financial Performance with Surging September Revenues
Governor Glenn Youngkin announced that Virginia’s general fund revenues saw a 12.4 percent increase in September 2024 compared to the same period last year. The first three months of Fiscal Year 2025 also reflect robust growth, with revenues 9.9 percent ahead of the same period in the previous fiscal year. These encouraging numbers demonstrate Virginia’s solid financial health and exceeded expectations by $395.8 million in September alone, bringing year-to-date collections $601.4 million ahead of projections.
Youngkin highlighted the importance of the state’s thriving labor market and ongoing business investments in driving these results. “Virginia’s strong financial position is reflected in September’s revenues, which are currently exceeding projections,” the governor said. “We remain committed to creating opportunities for all Virginians to thrive, even in the face of uncertain broader economic risks on the horizon at the national level.”
Revenue Tracking and Future Projections
According to Stephen Cummings, Virginia’s Secretary of Finance, September marks the first major collection month of the fiscal year due to first-quarter payments arriving from all major revenue sources. “We are tracking ahead of the official forecast, which assumed a mild recession in calendar year 2024,” Cummings noted. However, he emphasized the need for caution moving forward. “While we continue to be on track and ahead of collections, given that the majority of our excess revenue is attributable to nonwithholding collections and the overall volatility of this revenue source, we will continue our prudent revenue forecasting process as we develop the Governor’s proposed budget in December.”
The positive financial performance puts Virginia in a favorable position as the fiscal year progresses. However, the administration will remain vigilant, especially with volatile revenue sources like nonwithholding taxes contributing to much of the surplus.
This latest financial update not only reflects Virginia’s ability to navigate economic uncertainties but also highlights the administration’s ongoing commitment to fostering business growth and labor market resilience across the state. As planning continues for the Governor’s December budget proposal, state officials remain focused on maintaining fiscal discipline while supporting opportunities for economic prosperity.
