Richmond, Virginia – Governor Glenn Youngkin announced significant growth in Virginia’s general fund revenues, with a 4.1% increase in October and an impressive 8.6% increase over the first four months of the fiscal year compared to the same period last year. Year-to-date revenues have surpassed budgeted projections by $403.3 million, showcasing the state’s financial strength.
Key Drivers of Revenue Growth
October’s revenue collections were primarily driven by payroll withholding and sales taxes. This month typically sees less impact from other revenue sources like corporate income taxes, nonwithholding taxes, and refunds. Strong labor participation and low unemployment rates have contributed to this financial success.
“The Commonwealth continues to be ahead of plan driven by strong labor participation and low unemployment, despite slowing growth in the labor market,” said Governor Glenn Youngkin. “Virginia is financially strong and growing and we remain focused on our pro-business, pro-growth agenda.”
Secretary of Finance Stephen Cummings echoed the governor’s sentiments, highlighting the robust economic foundation provided by job and wage growth. “Revenue collections remain well above forecast, and strong individual income revenue sources supported by continued job and wage growth provide a solid base for continued revenue growth,” Cummings said.
Preparing for Future Forecasts
Virginia’s fall revenue forecasting season is well underway. It began with the Governor’s Advisory Council on Revenue Estimates (GACRE) meeting on July 31 and continued with the Joint Advisory Board of Economists meeting on October 8. The second GACRE meeting is scheduled for November 25, with a revised forecast for fiscal years 2025 and 2026 to accompany Governor Youngkin’s proposed budget, set for release on December 18.
Virginia’s sustained economic growth and exceeding revenue projections indicate a stable financial outlook as the state prepares to shape its future budget priorities.
