Commonwealth Posts 16.7 Percent Revenue Growth in February
Eleventh Month out of Last 12 with Increase in Revenue Collections over Prior Year; Follows 12.6 Percent Revenue Increase in January
Tuesday, March 15, 2011
Office of the Governor
Governor Bob McDonnell announced today that February revenue collections increased by 16.7 percent over the prior year. This is the eleventh month out of the last 12 in which state revenue collections exceeded the previous year's amount. It is the fourth month in a row in which year-over-year revenue growth was greater than 9 percent.
The revenue increase was primarily driven by withholding (+10.6 percent) and sales tax (+6.4 percent-this number reflects January sales) collections. On a year-to-date basis, total revenue collections have risen 4.1 percent, slightly ahead of the revised annual forecast of 4 percent growth. Adjusted for the accelerated sales tax program, state revenues have grown 6.2 percent, ahead of the forecast of 5.6 percent.
Speaking about the latest revenue report, Governor McDonnell noted, "We are continuing to see clear signs that Virginia's economy has begun to turn the corner. Last week, we announced that the seasonally adjusted unemployment rate in Virginia has fallen to a two-year low. Today, we are announcing another month of positive revenue numbers. The economic trend in the Commonwealth is positive and it is increasingly consistent."
The governor continued, "Of course macro-numbers announced in Richmond don't mean anything to a family in Roanoke struggling to pay their bills. While we recognize the recent good news, we cannot lose sight of the fact that this recovery is still fragile and early. Until every Virginian can find a good-paying job to support their family, our work is not over. Too many Virginians remain unemployed. Too many opportunities remain unavailable to our citizens. That is why this administration will continue to adhere to a path of fiscal responsibility in the state budget and will aggressively support private-sector job creators with our public policies. Virginia is wide open for business. We are committed to using every resource available and taking every step necessary to help private sector job creators grow jobs, and in turn, grow our economy."
The February revenue numbers are available at this link: http://www.finance.virginia.gov/KeyDocuments/RevenueReports/FY2010-2011/2011ReportsList.cfm
For additional information contact Ibbie Hedrick at 804-225-2487 or email@example.com.