Governor Bob McDonnell announced that August revenue collections decreased by 4.8 percent from August of last year. August is not a significant month for revenue collections. On a year-to-date basis, total revenue collections rose 3 percent through August, ahead of the annual forecast of 1.5 percent growth. Adjusting for the accelerated sales tax program and the 0.125 percent sales tax transfer required by last session's historic transportation bill, total revenues grew 3.6 percent through August, ahead of the adjusted forecast of 1.4 percent growth.
The decrease in August revenue was driven by a 5.5 percent decline in individual withholding payments. However, that reduction was expected following double-digit growth in withholding collections in July. In addition, this August featured one less deposit day than August 2012. Additionally, sales and use tax collections fell 5.6 percent, reflecting sales in July.
Speaking about the August numbers, Governor Bob McDonnell noted, "The Commonwealth just posted its fourth consecutive budget surplus. This is the first time that has been achieved during one gubernatorial administration since Governor Allen's term in the mid-1990's. While August revenue numbers are slightly down, as anticipated due to the importance of individual withholding payments, Virginia's overall revenue picture continues to be positive. We are running ahead of projections on a year-to-date basis, and we continue to make sound investments in areas like transportation, higher education, economic development and the Rainy Day Fund that are crucial to both the fiscal stability of state government and the growth of the private-sector. As we begin our work on the next biennial budget, which I will present in December, we will continue to adhere to a course of wise investment of limited resources in those sectors of government most crucial to spurring job-creation and providing opportunities for our citizens. I look forward to working with the legislature in crafting the Commonwealth's budget blueprint for the next two years."
The August revenue numbers are available at this link: http://www.finance.virginia.gov/KeyDocuments/RevenueReports/FY2013-2014/2014ReportsList.cfm