Revenue Forecast: With billions in coffers, Governor Youngkin looks to tax relief for Virginians

RICHMOND, VA – On February 18, 2022, Governor Glenn Youngkin sent a letter to Delegate Barry D. Knight and Senator Janet D. Howell to inform them of a revised revenue forecast that estimates the Commonwealth will collect $1.25 billion more in the current fiscal year, on top of the additional $3.3 billion added to the original forecast added last December.

“This is a staggering number, the largest mid-session reforecast in anyone’s memory. The stunning amount of money being collected from taxpayers is the direct result of over-taxation. Put simply, without significant tax relief, the Commonwealth’s general fund collections will grow by over 40% percent between 2018 and 2024. In the next few weeks, as we put together a bipartisan budget agreement before the March 12th deadline to adjourn, it is clear that we must return money to taxpayers to relieve the pressures of inflation and economic uncertainty felt by families and businesses,” wrote Governor Glenn Youngkin. “Of the roughly $13.4 billion in unanticipated revenue the state will collect in this budget cycle, I am asking the General Assembly to return $4.5 billion to taxpayers. That leaves nearly $9 billion in new revenue to invest in schools and teachers, law enforcement, behavioral health, and the other important priorities of the General Assembly. I am confident that we can provide tax relief for Virginia families and invest in our shared priorities.”

Read the full letter here.

Read the Mid-Session Revenue Review here.