Va. posts consecutive revenue growth for first time since ’08

Total collections grew by 0.4 percent, following a 3 percent increase in March. A 7.3 percent jump in sales and use tax collections and a 38.7 percent increase in corporate income tax revenue helped buoy overall revenue, according to a report from Secretary of Finance Richard Brown.

There were a few caveats to the figures, however. Pent-up demand from February’s snowstorms and an early Easter buoyed the sales tax collections, and part of the increase in corporate tax collections came from one-time payments, the report said.

The report also forecast a 2.3 percent drop in general revenue for the current fiscal year, which ends June 30.

Still, state officials were cautiously optimistic about the numbers.

“It’s just a very good sign to have back-to-back positive months,” Brown said. “[This] is very good news for Virginia, and it shows that things are steadily improving.”

Gov. Bob McDonnell said the two straight monthly gains marked a “significant improvement” in the state’s revenue trend, but that more still needs to be done.

“Unemployment is far too high, and Virginians are struggling to make ends meet, provide for their families and manage their businesses,” he said.

Brown agreed that jobs will be the key to an extended recovery.

“You’re not going to see revenue growth until you see employment growth,” he said.

State payroll employment dropped 1.4 percent in March from last year, with Northern Virginia seeing a decline of 0.6 percent. But the losses are gradually waning, the report said.

“The state, in terms of job growth, is showing improvement,” said Don Lillywhite, research director for the Virginia Employment Commission. “We hope that continues with the release of the April numbers next Friday. We’re hopeful that things are on a roll to get better.”

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