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Va. ends year with budget surplus, McDonnell confirms

Virginia Gov. Bob McDonnell (R) confirmed in a radio interview Tuesday morning that the state concluded the fiscal year with a budget surplus. He told WNIS listeners in Norfolk on his monthly radio appearance that his administration would announce budget numbers tomorrow, echoing comments made last week to fellow governors during the annual meeting of the National Governors Association.

His administration has been predicting since June that year-end numbers would show that the state had returned to profitability for the year. Still, the official numbers will be comforting for officials that have spent the last year making deep cuts in the state budget to close shortfalls. "We've been able to turn it around in short order," McDonnell said during the radio program. "The good news is we've started to see a ray of sunshine. We've started to turn things around."

The General Assembly agreed that state surplus money for the year would go to pay state employees and 3 percent raise bonus. Employees have gone without raises since 2006 and the state workforce has seen multiple rounds of layoffs. Lawmakers in both parties called for surplus funds to be used to provide employee relief.

Still, there has been some murmuring among conservatives about whether the state's first surplus in two years should be spent or saved. That's a topic we could hear more about from the governor as he announces official budget numbers this week.

-- Rosalind S. Helderman and Anita Kumar

By Rosalind Helderman  |  July 13, 2010; 11:34 AM ET
Categories:  General Assembly 2010 , House of Delegates , Robert F. McDonnell , State Senate  
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Comments

I don't think it's a three percent raise, I believe it is a one time three percent bonus.

Posted by: MillionSix | July 13, 2010 2:23 PM | Report abuse

Regardless of who deserves the credit, this is some very welcomed news given the economy.

Posted by: LloydtheIdiot | July 13, 2010 4:20 PM | Report abuse

Rosalind, I hope you check these posts. The state accelerated estimated sales tax payments in June for all businesses that collect sales tax that have over $1 million in yearly sales. This would give Virginia a major bump in revenue for the the fiscal year ending June 30th. This needs to be publicized when politicians take credit for bookkeeping shifts. Please feel free to contact me, I'm a small business owner that had to pay this early sales tax collection.

Posted by: BobCaldwell | July 13, 2010 9:39 PM | Report abuse

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