General Fund Revenue Report
Governor Glenn Youngkin today announced that general fund revenues for January 2024 remain in line with the consensus revenue forecast. For the month of January, Virginia experienced a 2.5 percent decline in comparison to the same period last year, despite an extra collection day relative to the prior year. Year-to-date general fund revenues are up a moderate 5.3 percent through the first seven months of Fiscal Year 2024. The slight decline was driven largely by a dip in non-withholding collections and lower-than-expected individual income tax refunds related to the elective Pass-Through Entity Tax (PTET), while other major revenue sources were generally in line with expectations.
“The Commonwealth’s January revenues show that our conservative forecast remains prudent as conflicting economic signals continue to cloud definitive conclusions in the fiscal year,” said Governor Glenn Youngkin. “Virginia’s labor market remains tight and we continue to monitor withholding and non-withholding patterns as we start a new calendar year. This month’s report confirms we budgeted appropriately when releasing our Unleashing Opportunity budget in December and as the budget process moves forward in the General Assembly this weekend we can all be confident the topline forecast remains prudent.”
“While PTET-related collections and refunds continue to distort overall revenue collections, underlying revenue growth in our major revenue sources remains on or slightly ahead of forecasts,” said Secretary of Finance Stephen Cummings. “We are confident in our conservative revenue forecast and we are continuing to monitor revenue collections and economic data. Given these downside risks, we will maintain a cautious outlook going forward.”
Among the major revenue sources, net individual income tax collections, corporate income tax, and interest income are all slightly elevated relative to last year, while sales and use tax collections, insurance premiums, and wills, suits and deeds are all lower year-to-date. The full January 2024 revenue report is available here.