General Fund Revenues remain above forecasted levels

Governor Glenn Youngkin announced the General Fund revenue collections for January 2023. For January, which is typically a significant month for collections, adjusted general fund revenues increased by 3.0 percent compared to January 2022. On an unadjusted basis, general fund revenues increased by 2.1 percent year-to-date.

“Month after month, these revenue numbers reflect our previously forecasted levels for the Commonwealth; the system has more than sufficient level of funds to cut taxes for families and local businesses and make significant investments in behavioral health, our children’s education, and law enforcement recruiting and retention in Virginia,” said Governor Glenn Youngkin. “As Virginians continue to relocate to lower tax states, the time to lower the cost of living in Virginia is now. The Commonwealth remains in an extremely strong fiscal position to deliver on our agenda for Virginians, and I’m looking forward to working with the General Assembly to make that a reality.”

“The Governor’s December forecast reflects a prudent outlook for revenue collections,” said Secretary of Finance Stephen Cummings. “Year-to-date collections and recently revised economic forecasts are consistent with that outlook. As a result, we remain confident in the availability of the resources necessary to implement the Governor’s agenda. The Commonwealth’s tax receipts have consistently exceeded expectations, and these tax reductions are not only affordable but necessary to lower the cost of living for our citizens and ensure our competitiveness as we compete for economic growth.”

Year-to-date collections are running ahead of the January updated projections by $78.7 million. Among major sources, growth in withholding collections is slowing, but the forecast largely anticipates the slowdown. Upcoming February collections will provide initial insight into individual refunds for the filing season.

The full January 2023 revenue report is available here.