WASHINGTON — Virginia finished its 2013 fiscal year with a $585 million budget surplus, Gov. Bob McDonnell announced Monday.
The amount is the commonwealth’s largest surplus since 2005. Virginia’s general fund revenue collections and transfers in fiscal 2013 exceeded the official budget estimate by $264.3 million, and state unexpended balances and recoveries were $320.7 million. Fiscal 2013 ended on June 30.
During the four fiscal years of McDonnell’s administration, the cumulative surplus total was nearly $2 billion. This appears to be the largest surplus ever compiled by any Virginia governor’s administration, officials said. McDonnell, who cannot run for reelection due to term limits, is the first governor to have a revenue surplus at the end of all four fiscal years in office since the 1990s.
“Our good performance on the revenue front is concrete evidence of the commonwealth’s improving jobs picture, real estate market, and overall economic conditions,” McDonnell said in an address to the joint money committees of the Virginia General Assembly.
McDonnell noted that state general fund spending, when rainy-day fund deposits are subtracted, has only increased by 0.3% percent, or $56.9 million, over the last six years. The spending increase rate is far below the rate of inflation and population growth in the state during the same time period.
“The bottom line is that, during this administration, we have worked closely with you to firmly hold the line on state spending and focus on economic growth,” McDonnell told the committee members. “I am especially pleased with our bipartisan accomplishments and new targeted investments in K-12 and higher education, public safety, economic development, health and human services, natural resources, and transportation.”
The Virginia State Constitution and Appropriation Act contains provisions that specify how most of the surplus money will be used. The largest chunk of the money will be deposited in the rainy-day fund, and some of the surplus money will also go to the state’s Water Quality Improvement Fund and Transportation Trust Fund.
