Virginia general fund revenue collections increase 1.7%
This year’s $18 billion in revenue collections set a new record for annual gross receipts, but fell short of the official budgetary forecast for the year.
Preliminary figures indicate that the state concluded fiscal year 2016 with 1.7 percent growth in general fund revenue collections, excluding transfers, but faces an approximate $266.3 million shortfall from the official forecast.
Total general fund revenues were forecast to increase 3.2 percent in fiscal year 2016.
This represents a 1.5 percent forecast variance from the official budget estimate, with payroll withholding and sales tax receipts falling short of expectations.
The final fiscal year 2016 tally, including transfers, will not be available until August 26th when it will be released to a Joint Legislative Money Committee meeting.
As required by law, the State Comptroller submitted a report to the Governor today on the preliminary results of revenue collections for fiscal year 2016.
The data indicate that total individual income, corporate income and sales tax collections were 1.8 percent below the official budget estimates for the year.
Since this shortfall is more than 1.0 percent below the official budget estimate for these sources, a re-estimate of general fund revenues is required per the Code of Virginia to be completed by September 1.
Language in the Appropriation Act also requires that pay increases for state and state-supported local employees, slated for December 1, cannot move forward pending budgetary actions to address the shortfall. ■