Virginia revenues rise for second month, still forecasted to be down for the year
Virginia has posted tax revenue growth for the second month in a row, the first two consecutive months of growth in two years and a "small indicator," Gov. Bob McDonnell (R) said, that there are positive developments in the economy.
The revenue growth is some mild good news. General fund revenues grew .4 percent in April 2010 over April 2009. That's not quite as good as last month, during which revenues grew 3 percent over March 2009. And despite the two months of growth, revenues for the year are down 3.6 percent for the year -- that's 1.3 percent more than had originally been predicted.
Still, there are other bright spots in the monthly report. Corporate income tax revenue jumped a whopping 38.7 percent and sales and use taxes rose by 7.3 percent. The governor's office reports that the latter is the largest jump since May 2008, with the exception of December during a tax amnesty.
Here's what McDonnell had to say about the report, which you can read in full here.
Although the increase in total revenue is modest, two consecutive months of growth represents a significant improvement in the trend for general fund revenue collections. Today's news can be seen as a small indicator that some positive developments are taking place in our overall economy. However, we have a long way to go before we emerge from one of the deepest and most persistent economic downturns in our history. Unemployment is far too high, and Virginians are struggling to make ends meet, provide for their families and manage their businesses. We will continue to focus on putting in place pro-growth policies that encourage job creation and help get Virginia's economy firmly back on track.
May 13, 2010; 2:00 PM ET
Categories: Robert F. McDonnell , Rosalind Helderman
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