The following is a press release from the Governor's office.
Bob McDonnell announced today that February revenue collections
increased by 16.7 percent over the prior year. This is the eleventh
month out of the last 12 in which state revenue collections exceeded the
previous year's amount. It is the fourth month in a row in which
year-over-year revenue growth was greater than 9 percent.
The revenue increase was primarily driven by withholding (+10.6 percent)
and sales tax (+6.4 percent-this number reflects January sales)
collections. On a year-to-date basis, total revenue collections have
risen 4.1 percent, slightly ahead of the revised annual forecast of 4
percent growth. Adjusted for the accelerated sales tax program, state
revenues have grown 6.2 percent, ahead of the forecast of 5.6 percent.
Speaking about the latest revenue report, Governor McDonnell noted, "We
are continuing to see clear signs that Virginia's economy has begun to
turn the corner. Last week, we announced that the seasonally adjusted
unemployment rate in Virginia has fallen to a two-year low. Today, we
are announcing another month of positive revenue numbers. The economic
trend in the Commonwealth is positive and it is increasingly
The governor continued, "Of course macro-numbers announced in Richmond
don't mean anything to a family in Roanoke struggling to pay their
bills. While we recognize the recent good news, we cannot lose sight of
the fact that this recovery is still fragile and early. Until every
Virginian can find a good-paying job to support their family, our work
is not over. Too many Virginians remain unemployed. Too many
opportunities remain unavailable to our citizens. That is why this
administration will continue to adhere to a path of fiscal
responsibility in the state budget and will aggressively support
private-sector job creators with our public policies. Virginia is wide
open for business. We are committed to using every resource available
and taking every step necessary to help private sector job creators grow
jobs, and in turn, grow our economy."