Richmond, VA – According to the state officials, for Fiscal Year 2025, year-to-date revenues exceed budgeted projections by $403.3 million.
October collections, which mainly consist of payroll withholding and sales tax collections, are typically not significant for other sources such as corporate income, nonwithholding taxes, and refunds. However, the state continues to perform well in revenue growth despite a slowing labor market.
“The Commonwealth continues to be ahead of plan, driven by strong labor participation and low unemployment, despite slowing growth in the labor market,” Governor Youngkin said. “Virginia is financially strong and growing, and we remain focused on our pro-business, pro-growth agenda.”
Secretary of Finance Stephen Cummings also praised the state’s economic performance. “Virginia’s economy continues to be strong through the first four months of Fiscal Year 2025. Revenue collections remain well above forecast, and strong individual income revenue sources, supported by continued job and wage growth, provide a solid base for continued revenue growth.”
The state’s fall revenue forecasting season began with a meeting of the Governor’s Advisory Council on Revenue Estimates on July 31 and continued with the Joint Advisory Board of Economists meeting on October 8. The second meeting of the Governor’s Advisory Council on Revenue Estimates will take place on November 25, and a revised forecast for Fiscal Years 2025 and 2026 will accompany the Governor’s proposed budget, which is set to be released on December 18.
