Amid Inflationary Pressures, February General Fund Revenues Remain in Line with Forecast

RICHMOND, VA (VR) – Governor Glenn Youngkin announced that general fund revenues for February 2024 remain consistent with the forecast. For the month of February, total general fund revenues increased 17.3 percent versus the same period last year. Year-over-year growth in February collection was affected by one additional deposit day due to leap year.

“The Commonwealth’s February revenues show that our conservative forecast remains prudent as mixed labor market signals and the persistence of inflationary pressures continue to impact the outlook for interest rate reductions and the economy,” said Governor Glenn Youngkin. “As we continue to monitor withholding and non-withholding patterns, this month’s report reinforces the importance of advancing a budget that does not raise taxes but rather empowers job creation and fosters a business environment that moves Virginia forward, not backward.”

“January and February collections were impacted by additional deposit days and the timing of payments from a small number of taxpayers. Taking these timing differences into account, year-to-date collections from core general fund revenue sources are generally in line with projections,” said Secretary of Finance Stephen Cummings. “Excluding individual income tax non-withholding and refunds, which continue to be distorted due to payments and refunds related to the recently enacted elective Pass-Through Entity Tax, general fund revenues are 2.1 percent higher than projected through February.”

Among the major revenue sources, net individual income tax collections, corporate income tax, and interest income are all higher relative to last year, while sales and use tax collections, insurance premiums, and wills, suits and deeds are all lower year-to-date.