Virginia revenue collections are up 7.8 percent in August compared to the same month last year, but Gov. Bob McDonnell downplayed the numbers amid concerns that a sagging national economy will continue to plague the state’s financial growth.
The spike was fueled mostly by a 13.3 percent increase in individual income tax withholdings, the August revenue report showed. However, sales tax revenue fell 4.4 percent from last year, perhaps signaling consumer’s lingering reluctance to spend.
“The fact is, while Virginia’s economy continues to recover, we still have not fully turned the corner from the deep and long-lasting downturn that has impacted every Virginian,” McDonnell said in a statement.
Revenue collections year-to-date are up 8.8 percent compared to last year’s numbers and are ahead of growth projections. In 17 of the last 18 months, revenues were higher than the previous year.
But McDonnell warned, “There are tough days still ahead, and we know that the road back to economic prosperity for all our citizens will be a long and winding one. Virginia is not immune to national trends.”
