Virginia Gov. Bob McDonnell is 57 today and Lt. Gov. Bill Bolling is 54 – and the birthday boys were greeted with some good news in the way of revenue growth in the commonwealth.
May revenue collections increased by 17.9 percent compared to last year – the 14th month in the last 15 where state revenues topped the previous year’s amount, as Virginia continues to creep out of the throes of the recession.
The growth was mainly due to a 49 percent jump in nonwithholding receipts, or individual payments based on 2010 tax year liabilities.
Despite the overall jump, growth in two large sources, withholding and sales tax, slowed; they grew by rates of 3 percent and 3.8 percent, respectively. Those increases were modest, though, considering that there was an extra deposit day for May and Easter typically adds to sales growth, according to a memo from Finance Director Ric Brown.
McDonnell, as he has in past months, greeted the report as a “positive sign,” while tempering it with words of caution.
“Even though our revenue collections continue to increase month after month, too many Virginians are still out of a job,” McDonnell said. “That is unacceptable. We must work to ensure that every Virginian can find a good-paying job to support their families and afford the goods and services they need to live a healthy, happy life.”
Collections in June have to total about $1.6 billion to meet the forecast for the fiscal year, which ends June 30. Receipts in June last year were $1.8 billion, and McDonnell has said he expects the state to end the year with a modest surplus.
