Year-to-Date revenues running ahead of February projections

Governor Glenn Youngkin announced that the general fund revenue collections for February 2023 were 1.2 percent higher in the first eight months of FY 2023 than the previous year’s period. Relative to the official forecast updated in December, unadjusted general fund revenues are ahead of the forecast by $111.3 million year-to-date.

“February’s revenue numbers confirm that our December forecast continues to accurately represent that we will have a multi-billion-dollar surplus,” said Governor Glenn Youngkin. “Virginians remain overtaxed, and the Commonwealth has abundant resources available to lower costs and cut taxes for families and local businesses. At the same time, we can make critical investments to transform our behavioral health system, invest in education and law enforcement, and strengthen communities across Virginia. With the continuing uncertainties in the global economy and recent turbulence at U.S. banks, Virginia remains in a position of strength to deliver services and reduce taxes for Virginians.”

“February revenue collections came in ahead of plan,” said Secretary of Finance Stephen Cummings. “Results have exceeded expectations based upon a stronger-than-expected economy since we issued our forecast. Per that forecast, we expect an economic downturn to occur, albeit later than originally anticipated. Overall, results year-to-date support our outlook, and we continue to have confidence in our December forecast.”

Traditionally, February is one of the smallest revenue collection months and marks the beginning of the tax filing season when refunds for the 2022 tax year begin to be issued. Slowdowns in revenue sources, such as withholding collections, were largely anticipated and included in the December forecast. Higher interest income is offset by unanticipated weakness in corporate income and deed recordation tax collections. March collections will provide additional insight into individual refunds for the filing season.

The full February 2023 revenue report is available here.