Revenues Up but Governor Remains Cautious
Virginia tax revenues surged last month, but Gov. Terry McAuliffe cautioned against assuming that the state’s recent revenue swoon is over. McAuliffe said that revenues rose 7.4 percent in January over the previous January. He also says collections for the first seven months of the fiscal year are up 4.6 percent and ahead of the annual forecast revised in the face of last year’s shortfall. Despite the good news, officials say the improved outlook will not result in increased budget spending. Last year, budget officials were caught off guard when payroll withholding grew more slowly than expected, primarily because lower-paying jobs replaced high-wage jobs that were lost in northern Virginia and other parts of the state especially vulnerable to cuts in federal spending.