Virginia posts 12.6 percent revenue growth in January
Virginia tax collections continued to show healthy returns in January, as the state took in 12.6 percent more this January than last.
The numbers are a sign that the state's economy is continuing to slowly recover from the economic recession. They help explain Gov. Bob McDonnell's recent decision to forecast that the state will take in $150 million more this year and next than was once predicted.
This is the 10th month out of the last 11 that monthly revenues exceeded those of the same month last year. McDonnell's office says the revenue growth has been driven by strong increase in income tax and sales tax collections.
His office says the figures mean that total revenues for the fiscal year, which began July 1, have now grown by 5.4 percent, when adjusted for the state's accelerated sales tax program. That's slightly higher than the expected forecast of 5.2 percent.
"These economic indicators are showing a trend of progress and recovery. Unemployment numbers continue falling, and Virginia has added 55,400 jobs since February 2010, the fourth highest number of net new jobs in the nation," McDonnell (R) said in a statement.
He called on the General Assembly to adopt a fiscally responsible budget so "this early recovery takes hold and is sustained for the long term."
Rosalind S. Helderman
| February 15, 2011; 1:45 PM ET
Categories: Budget, Robert F. McDonnell, Rosalind Helderman
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