Earlier this week, Secretary of Finance Richard Brown released Virginia's Tax Revenue thru May. When compared to last year, May's general fund revenue collections decreased 0.2%, which beat this year's budget of a 2.3% decrease. In addition, Sales and Use Tax collections saw their first back-to-back months of positive growth since November-December 2008. Those increases, paired with March and April's consecutive growth in general fund revenue, bode well for a positive conclusion to the fiscal year 2010 ending in July.
All of these numbers are an early but good sign for Virginia. We have budgeted within our means so far and, as we move towards the close of the 2010 fiscal year, have the potential to see a slight budget surplus. However, we are by no means out of this recession. There are still a lot of Virginians and Americans without jobs and losing their homes.
These revenue numbers are a good sign that we are slowly moving in the right direction, but we must reduce the size and cost of government, and create an environment for attracting jobs to an "open for business" Virginia.
Have a great Summer!
Jeffrey L. McWaters