Finance Department reports April revenues surpass projections by $322 million

The Virginia Senate Finance and Appropriations Committee reported promising financial news during its recent meeting, highlighting a projected revenue surplus of $2.1 billion for the fiscal year 2025. This surplus is a significant indicator of the state's economic health and suggests that revenues are on track to meet or even exceed expectations.

Year-to-date general fund revenues have reached $1.49 billion, marking a 6.3% increase compared to last year and $211 million, or 0.8%, above the forecast. April proved to be a particularly strong month, with revenues exceeding last year's figures by $322 million and surpassing the monthly forecast by $126 million. This positive trend is largely attributed to healthy collections from major revenue sources, including individual income and sales taxes.

While there were some deviations in income tax collections due to elevated refunds linked to an increased standard deduction, the overall performance remained robust. Notably, payroll withholding, which is the largest contributor to the general fund, increased by 6.3% over the previous year, despite missing the forecast due to timing issues. Sales and corporate income taxes also performed well, coming in ahead of expectations.

The committee expressed confidence in the state's financial outlook, indicating that even with a potential decline of 4.7% in the last two months of the fiscal year, Virginia is well-positioned to meet its revenue goals. This financial stability is crucial for funding essential services and programs that directly benefit residents across the state. As the fiscal year progresses, the committee will continue to monitor revenue trends to ensure that Virginia's economic growth remains on track.