RICHMOND Va. (WRIC) — Virginia finished fiscal year 2021 with a $2.6 billion surplus — the largest in the Commonwealth’s history, according to Gov. Ralph Northam’s Office.
“We have effectively managed Virginia’s finances through the pandemic, and now we are seeing the results—record-breaking revenue gains, a recovery that has outpaced the nation, and recognition as the best place to do business,” Northam said in a statement.
The announcement said the state’s revenue collections increased by 14.5 percent since the fiscal year 2020 — which is much greater than the 2.7 percent growth that was originally predicted.
“We expected a strong revenue performance and this surplus is even larger than initially anticipated,” said Joe Flores, Virginia’s secretary of finance. “We are encouraged that for the fiscal year, payroll withholding and retail sales taxes increased by 6.4 percent signifying that Virginia’s underlying economic foundation is strong.”
About half of Virginia’s surplus came from individual nonwithholding taxes. However, the governor’s office added payroll withholding, sales and corporate income taxes also increased more than expected.
Revenues decreased in June by $180.8 million or 5.8 percent compared to last year, but the announcement said that could be attributed to the extension of the individual tax filing deadline to May 17.
The governor’s office said the final figures for fiscal year 2021 will be released on Aug. 18, at the Joint Money Committee meeting.