Gov. Bob McDonnell said Virginia posted a 3.9% revenue increase in September, making it the 18th month out of the last 19 in which revenue exceeded the previous year’s collections.
The lingering economic uncertainty and the lack of clarity in federal funding forecasts continue to prompt caution for Virginia officials planning for the 2012 budget, McDonnell said.
September is a significant month for revenue collections because estimated payments from individuals, corporations, and insurance programs are all due in addition to regular monthly withholding, sales taxes, and other collections.
The revenue increase was primarily driven by a 17.3% growth in individual non-withholding payments and a 5.8% growth in sales and use taxes, state officials said. Receipts for individual income tax withholding fell by 3.7%.
Year-to-date, total revenue collections have risen 6.7% and are ahead of the revised annual forecast of 3.7% growth predicted by state economists.
“Virginia’s economy continues to show modest growth and signs of improvement that surpass those of the nation’s economy as a whole, but the fragile national economy, persistent uncertainty regarding federal funding decisions, and our economy’s vulnerability to upheaval due to national and world events prompts economists and elected officials to take a cautious, conservative fiscal approach,” McDonnell said.
More than 250,000 Virginians remain out of a job despite signs of economic growth, according to the governor.
“We also know that the nation’s economic recovery has slowed in recent months, and that there are still many difficult days ahead,” he said.
