RICHMOND, VA – Governor Glenn Youngkin today announced that Virginia’s general fund revenues ended fiscal year 2024 $1.2 billion over the official revenue forecast. For the full fiscal year, overall general fund revenue collections grew 5.5 percent, well above the 1.3 percent increase assumed in the official forecast. The official forecast incorporated $525 million of excess revenues received through April, and $22 million of adjustments related to the military retirement income tax subtraction. The $1.2 billion surplus fully-funds contingent spending on shared priorities incorporated in the enacted budget including the additional $90 million in funding for the recently restored Virginia Military Survivors and Dependents Education Program (VMSDEP).

“Preliminary year-end results demonstrate that robust job growth produces record revenues that allow us to make continued investments in shared priorities,” said Governor Glenn Youngkin. “Record revenues underpinned by Virginia’s strong job growth continue to show there is plenty of money in the system to make critical investments while cutting taxes to bring down the cost of living for hardworking Virginians. We will stay focused on driving the policies that earned Virginia’s recognition as America’s Top State for Business and unleashing job growth and opportunity for all Virginians.”

“Revenue collections ended the fiscal year well above expectations. Not only did collections exceed estimates embedded in the current Appropriation Act by $1.2 billion, revenues also exceeded our December projections by $1.7 billion,” said Secretary of Finance Stephen Cummings. “With this strong performance, our excess collections are sufficient to meet all identified investment priorities including additional funding for accelerating Interstate 81 improvements, water quality improvements in the Chesapeake Bay, and meeting our commitments to the education of our military heroes, Gold Star families, first responders, and all those who have served their nation and their Commonwealth.”

 

Analysis of Fiscal Year 2024 Revenues 

Based on Preliminary Data 

  • Based on preliminary data, Fiscal Year 2024 revenues exceeded the Chapter 1 Forecast (May 2024) by $1.2 billion and were $1.7 billion higher compared to the December 2023 forecast.
  • Higher than expected revenue collections are primarily attributable to increased net individual income taxes and higher than projected sales and use taxes, partially offset by lower than forecasted corporate income taxes.
  • Individual income nonwithholding collections and refunds, combined, contributed $1.1 billion to the surplus. A portion of that surplus is attributable to the timing of receipts and refunds related to the elective Pass-Through Entity Tax (PTET).
  • Payroll withholding grew 4.8 percent, exceeding the forecasted growth rate of 3.8 percent.
  • Sales tax collections decreased 0.5 percent as compared to the annual forecast of a 4.6 percent decline.
  • Net corporate income tax collections declined 6.1 percent compared to the official estimate of a 9.0 percent increase due largely to the timing of refunds.
  • A complete accounting of all final revenue sources will be available after final year-end close and will be released on August 14th when the Governor speaks at the Joint Money Committee Meeting.