The Shadow
RICHMOND, VA (VR) — Governor Abigail Spanberger announced that after accounting for June, the full fiscal year surplus has amounted to $936.3 million. The recently adopted biennium budget incorporates $585.5 million of this surplus in Fiscal Year 2027 starting balances. General fund revenues grew $2.09 billion — or 6.7 percent — year-over-year. Growth was driven by strong individual income tax and strong sales tax receipts. Revenue figures are based on July 9 preliminary accounting reports.
“The Commonwealth has made clear our continued commitment to sound budgeting,” said Governor Abigail Spanberger. “I am proud of our bipartisan work to produce a balanced budget that delivers on shared priorities. Virginia’s adopted budget makes critical investments in education, healthcare, and public safety while setting aside revenue to protect our Commonwealth from the uncertainty coming out of Washington. I look forward to continuing to partner with the General Assembly to provide stability for businesses, families, and communities across Virginia.”
“Preliminary Fiscal Year 2026 General Fund collections ended the year $936 million ahead of the Chapter 7 forecast and more than $2 billion above Fiscal Year 2025,” said Secretary of Finance Mark D. Sickles. “Payroll withholding drove most of the growth. Additional gains came from higher non-withholding payments and fewer refund liabilities. Together, these two highly volatile revenue sources accounted for two-thirds of the Fiscal Year 2026 surplus. The General Assembly and the Spanberger Administration maintained a cautious approach to these volatile revenue sources, which is why they represent such a large share of last year’s surplus. We are committed to continuing to exercise caution with respect to these revenue streams to keep Virginia’s balance sheet healthy and resilient amid uncertain national economic conditions.”
As of July 9, preliminary accounting shows Fiscal Year 2026 General Fund revenues grew 6.7 percent or $2.09 billion. The Chapter 7 budget assumed a growth rate of just 3.7 percent, resulting in a surplus of $936.3 million.
The full revenue letter from Secretary of Finance Sickles is available here.
