General Fund revenues in line with updated forecast through Q1

RICHMOND, VA –Governor Glenn Youngkin announced that general fund revenues for September 2023 remain in line with updated revisions to the official revenue forecast. In comparison to the revenue forecast assumed in the amended budget, year-to-date total general fund revenues are ahead by $412.1 million, primarily due to higher non-withholding revenues. All major sources of revenue are generally in line or ahead of projections.

“As inflation driven by excess federal spending keeps gas and grocery costs high, last month we signed Virginia’s amended budget, which included an additional $1 billion in tax relief to continue lowering the cost of living for families, veterans and workers in the Commonwealth,” said Governor Glenn Youngkin. “We continue to accurately predict the health of the Commonwealth’s economy as we continue to see positive economic indicators and growing jobs numbers that signal Virginians’ return to the workforce. We continue monitoring the rise in geopolitical instability abroad following the barbaric terrorist attack on the Jewish people in Israel and domestic economic headwinds here at home as inflation persists.”

“For the first quarter of fiscal year 2024, general fund revenues are up 17.9 percent year-over-year and running ahead of projections, driven by better-than-expected individual income non-withholding and corporate income tax collections,” said Secretary of Finance Stephen Cummings. “The two revenue sources that most closely reflect current economic conditions in the Commonwealth, payroll withholding and sales tax collections adjusted for policy changes, are up a combined 3.5 percent, reflecting steady growth. Given the conservative outlook assumed in the forecast and results year-to-date, we remain confident in our fiscal year 2024 forecast, and we continue to closely monitor macroeconomic and geopolitical events as they unfold.”

General fund revenues were up 51.9 percent for the month of September on an unadjusted basis. Year-to-date through September 30, general fund revenues are up 17.9 percent over the prior year. Adjusting for policy and the timing of refunds related to the Pass-Through Entity Tax (PTET), September revenues increased by 9.4 percent and are up 8.6 percent year-to-date. Adjusting for policy, but excluding PTET adjustments, revenues are up 4.0 percent through September.