For the second straight year, the Commonwealth of Virginia has reached the end of the fiscal calendar in the black. Governor Bob McDonnell announced today that the state concluded Fiscal Year (FY) 2011 with an approximately $311 million surplus from general fund revenue collections and transfers. Total revenue collections rose by 5.8% in FY 2011, well ahead of the revised revenue forecast 3.5% growth. The main drivers of the revenue increase were growth in individual income tax receipts from both payroll withholding and non-withholding, key economic indicators. A comprehensive breakdown of the FY 2011 revenue surplus is attached to this press release.
The final FY 2011 surplus number will be adjusted upward in the month ahead after the addition of final tabulations of savings recognized through greater operational efficiencies and incentives to control spending throughout state government. In FY 2010 the revenue surplus for the year was $228 million. The final FY 2010 surplus, including savings, was $403 million. The final surplus figure for FY 2011 will be released in August. The governor made today’s announcement at an afternoon press conference at the Patrick Henry Building on Capitol Square in Richmond. He was joined by Lieutenant Governor Bill Bolling and Secretary of Finance Ric Brown. It’s the second fiscal year in a row that Virginia has concluded the fiscal year with a revenue surplus. This is also the first year since 2008 that there has been actual revenue growth over the previous year.