Virginia’s March revenue collections exceeded forecasts by 22.3 percent

Virginia’s Governor Glenn Youngkin has announced that March revenue collections exceeded forecasts by 22.3 percent. General fund revenues were approximately $870 million higher year-to-date than the mid-session revised forecast issued in January. Total revenue collections have risen 14.5 percent through March, well ahead of the revised annual forecast of 9.2 percent growth, according to a news release from the Governor’s Office.

“This revenue report shows strong signs that Virginia is growing. I am encouraged by the strength we’re seeing in our economy when you look at steady job growth, wages rising and median family income increasing in the Commonwealth,” said Governor Youngkin. “With this report confirming and exceeding our mid-session general fund forecast we continue to see evidence that there’s plenty of money in the system to provide critical tax cuts and needed relief for Virginians struggling with rising gas prices and record-high inflation on groceries and the products they need every day.”

“The March revenue report reflects an improving economic environment with an uptick in employment growth and strong wage growth,” said Stephen Cummings, Secretary of Finance. “But as always, the fourth quarter collections will be highly dependent on individual estimated and final nonwithholding payments. I am closely watching nonwithholding collections given their connection to a volatile stock market. However, I am confident that the revised revenue estimate provides sufficient cushion to meet the forecast.”

Total general fund revenues rose by 22.3 percent in March. Continued strength in payroll withholding and retail sales tax as well as strong growth in the leading edge of individual final payments due May 2 drove the growth.