Tuesday, June 15, 2010

Virginia revenue declines less than expected in May

In a press release Monday Governor Bob McDonnell announced that General fund revenue collections declined by only 0.2 percent in May, far outpacing the budget forecast of a 2.3% decline.

McDonnell invisioned a revenue surplus with an added $1.37 billion of revenue for the month of June.  Sales and use tax collections increased by 6.5% in May, after rising by 7.3% in April. 

McDonnell said he was heartened by the back to back months of increases in collections of sales and use taxes.  There is much work to be done, and many more positive reports will be needed, before we can truly say we have turned the corner on one of the worst economic downturns in our nation’s history.

If June’s general fund revenue collections are equal to the numbers from a year ago, the Commonwealth will post its first revenue surplus since June 30, 2008. McDonnell said, “We came together across party lines to make the hard choices necessary to close an historic budget shortfall without a tax increase. Our fiscal responsibility is positioning Virginia for economic growth and job creation in the years ahead.”

Posted By Valerie Garner

Categories: Finance, Politics, State Politics

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