Gov. McDonnell’s belt-tightening and economic policies are resulting in improved revenue flow for the Commonwealth and could see Virginia post a surplus for this fiscal year:
Governor Bob McDonnell announced today that May revenue collections significantly outperformed projections. General fund revenue collections declined by only 0.2 percent, far outpacing the budget forecast of a 2.3% decline. With the new numbers in, and on the heels of the first back to back months of increases in general fund revenue collections since March-April 2008, the Commonwealth is now on pace to post a revenue surplus at the conclusion of the fiscal year on June 30. To ensure a surplus the Commonwealth needs to collect $1.37 billion in general fund revenues in June. The Commonwealth collected $1.5 billion in June 2009, in a slightly softer economy. In addition to beating May’s forecast for general fund revenue collections, Virginia also recorded the first back to back months of positive growth in the collection of sales and use taxes since November-December 2008. Sales and use tax collections increased by 6.5% in May, after rising by 7.3% in April.
That’s good news. Now he just needs to keep a firm handle on spending so we can pay off debt and fund critical systems. That means keeping an eye on the General Assembly – particularly the Senate at this point – so they don’t go firing up or expanding those social engineering programs that always seem to crop up whenever “budget surplus” is mentioned. With control of the House firmly in the hands of GOP members who get it that fiscal restraint is what they were elected for, I’m fairly confident Bob McDonnell can see that task done.
Good job, Governor, to you and your team.