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Virginia ends budget year with $220 million surplus
RICHMOND
Virginia ended the fiscal year in June roughly $220 million in the black, a surplus that Gov. Bob McDonnell today heralded as an early symbol of his successful financial stewardship.
The turnaround stems largely from better than expected collections of certain individual and corporate taxes. Together, they account for more than 75 percent of the surplus.
Historically, both are among the more volatile state revenue sources, prone to fluctuate with the economy.
The surplus announcement isn’t entirely surprising; state officials have been hinting for a few months that a surplus seemed likely.
In a statement last month, McDonnell touted May revenues that outpaced projections even though the total taxes collected represented a slight decline.
“This is a small, yet very important, indicator that activity is returning to our economy, and Virginians are regaining some confidence in both the general fiscal outlook for our state and nation as well as the outlook for their own specific situations,” McDonnell remarked at the time. “There is much work to be done, and many more positive reports will be needed, before we can truly say we have turned the corner on one of the worst economic downturns in our nation's history. However, today's revenue report contains a number of items that should be highlighted, and provide some welcome good news after years of the opposite.”
Overall, administration officials are upbeat about today’s numbers as a sign that economic conditions are improving in Virginia amidst a still soft national recovery.
McDonnell came into office facing an immediate budget shortfall that and projections that the next two-year budget cycle would also be hampered by limited state funds.
The governor made clear that he would not accept tax increases, instead preferring a more austere state budget with substantial cuts to core programs.
The General Assembly presented him with a two-year spending plan devoid of higher taxes, using spending reductions and some creative accounting to arrive at a balanced budget.
For more details, return to PilotOnline.com later and read tomorrow's Virginian-Pilot.
Source URL (retrieved on 07/14/2010 - 17:56): http://hamptonroads.com/2010/07/virginia-ends-budget-year-220-million-surplus
RICHMOND
Virginia ended the fiscal year in June roughly $220 million in the black, a surplus that Gov. Bob McDonnell today heralded as an early symbol of his successful financial stewardship.
The turnaround stems largely from better than expected collections of certain individual and corporate taxes. Together, they account for more than 75 percent of the surplus.
Historically, both are among the more volatile state revenue sources, prone to fluctuate with the economy.
The surplus announcement isn’t entirely surprising; state officials have been hinting for a few months that a surplus seemed likely.
In a statement last month, McDonnell touted May revenues that outpaced projections even though the total taxes collected represented a slight decline.
“This is a small, yet very important, indicator that activity is returning to our economy, and Virginians are regaining some confidence in both the general fiscal outlook for our state and nation as well as the outlook for their own specific situations,” McDonnell remarked at the time. “There is much work to be done, and many more positive reports will be needed, before we can truly say we have turned the corner on one of the worst economic downturns in our nation's history. However, today's revenue report contains a number of items that should be highlighted, and provide some welcome good news after years of the opposite.”
Overall, administration officials are upbeat about today’s numbers as a sign that economic conditions are improving in Virginia amidst a still soft national recovery.
McDonnell came into office facing an immediate budget shortfall that and projections that the next two-year budget cycle would also be hampered by limited state funds.
The governor made clear that he would not accept tax increases, instead preferring a more austere state budget with substantial cuts to core programs.
The General Assembly presented him with a two-year spending plan devoid of higher taxes, using spending reductions and some creative accounting to arrive at a balanced budget.
For more details, return to PilotOnline.com later and read tomorrow's Virginian-Pilot.
Source URL (retrieved on 07/14/2010 - 17:56): http://hamptonroads.com/2010/07/virginia-ends-budget-year-220-million-surplus
