Secretary of Finance: Virginia’s August Tax Revenues Up 5.4 Percent, Economic Indicators Mixed

August General Fund tax revenues rose about 5.4 percent compared to August 2021 when adjusted for an extra deposit day this year. That’s a good sign but Secretary of Finance Stephen Cummings told legislators September’s data will be more significant for analysts and legislators who are trying to figure out what fiscal year 2023’s finances will look like.

“August collections exceeded projections, driven by employment and wage growth year-over-year,” Cummings said in a press release from the governor’s office.

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Virginia Finished Fiscal Year 2022 with $1.94 Billion Surplus

Virginia’s Fiscal Year 2022 General Fund revenues finished with a $1.94 billion surplus, after finishing Fiscal Year 2021 with a $2.6 billion surplus, the largest in Virginia’s history.

“While I am pleased that our additional revenue can be reinvested in Virginia, the Commonwealth’s general fund revenue surplus confirms that Virginians have been overtaxed for way too long,” Governor Glenn Youngkin said in a Thursday evening announcement of the 2022 surplus.

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Virginia Ends Fiscal Year 2021 with $2.6 Billion Revenue Surplus

Virginia ended Fiscal Year 2021 with a $2.6 billion surplus, the largest in Virginia’s history, with a 14.5 percent revenue growth over FY 2020.

“We have effectively managed Virginia’s finances through the pandemic, and now we are seeing the results—record-breaking revenue gains, a recovery that has outpaced the nation, and recognition as the best place to do business,” Governor Ralph Northam said in a press release.

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Virginia Legislators Lay Out Priorities for ‘American Rescue Plan’ Funds

The American Rescue Plan will provide $7.2 billion for Virginia: $2.9 billion allocated for municipalities, and $4.3 billion for the state government, according to a Tuesday announcement from Senators Mark Warner and Tim Kaine. On Wednesday, Governor Ralph Northam and Democratic General Assembly leaders released their priorities for the $4.3 billion, including upgrading public health infrastructure, funding the Rebuild Virginia small business recovery plan, adding funds to the Unemployment Trust Fund, modernizing public schools, and deploying broadband across Virginia.

“This is a unique opportunity to invest in Virginia’s long-term future. We intend to be good stewards of these taxpayer dollars, in full compliance with fiduciary guidelines. We reject calls to refuse these federal dollars, and we support the law’s prohibition on cutting state taxes to substitute federal dollars. We embrace this rare opportunity, and we choose to invest,” Northam and the legislators wrote.

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