Wednesday, March 14, 2012

Revenue growth surges in Virginia but governor cautious blaming Democrats

Governor Bob McDonnell

RICHMOND – Governor Bob McDonnell announced today that February revenue collections rose 17.2 percent over the same month a year ago. February is typically not a significant month for revenue collections, but an extra deposit day created by the leap year observance bolstered the numbers and all major sources except insurance premiums contributed to February’s growth.

On a year-to-date basis, total revenue collections have risen 5.0 percent, slightly ahead of the revised annual forecast of 4.6 percent growth. Adjusted for the accelerated sales tax program, state revenues have grown 4.6 percent, close to the economic base forecast of 4.7 percent growth.

The revenue gains this year compared to last February were reflected across all major revenue sources except wills, suits, deeds and contracts, and insurance premiums. These include, individual income tax withholding which rose 16.0 percent, collections of income tax non-withholding which rose 35.7 percent, sales and use tax collections which rose 5.7 percent, and collection of corporate income taxes which rose 28.8 percent. This overall 17.2 percent growth rate was the highest since last May when revenue growth registered 17.9 percent buoyed by final income tax payments. February is typically not a significant month for revenue collections. An extra deposit day created by the leap year observance bolstered the numbers.

“Virginia continues to gradually recover from the extremely difficult economic period of the past several years,” Governor McDonnell said. “The bipartisan effort to put in place a pro-business, job-creation agenda in the Commonwealth is paying dividends. However, our growth remains subject to many unstable factors, not the least of which is the uncertainty following Senate Democrats’ decision to reject both proposed budgets during the 2012 regular session. Adding to that, the fragile national economy, persistent uncertainty in federal funding, and world and national events continue to leave us exposed to volatility that threatens our economic prosperity and growth.

“Nonetheless, it is a very good sign that our economy continues a comeback course and that our job-creation and business-growth initiatives are paying off. Virginia’s unemployment rate has fallen to 5.8 percent. This is the lowest unemployment rate in Virginia since January 2009, and down from 6.2 percent in December 2011. More Virginians are working today, and that is a very good thing. However, even with this good news, 250,000 Virginians are still without work. That is unacceptable. We must continue to do everything in our power to ensure that we help the private sector create good paying jobs for all our citizens, in every region of the Commonwealth.”

Posted By Valerie Garner

Categories: Politics, State Politics

Tags: , , ,


No Comments

Comments are not moderated. Notify any abuse at put ABUSE in the subject and the offensive post.

Leave a Reply