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.
1 comment:
The only "driver" of the surplus is having picked the a pessimistic revenue forecast.
Our "surplus" is already spoken for by our outstanding obligations (repaying borrowed transportation money, refilling the rainy day fund, repaying the retirement system, etc.). Bragging about this surplus would be like running up your credit card bill but then being thrilled that you ended the month with money in your checking account.
Obviously it's better than a deficit, but let's not start pretending we're flush. Revenues are still WAY below pre-recession levels and our roads are crumbling, our schools are crowded, and our police are short staffed.
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