Virginia finished the fiscal year 2012 with about $129 million more in revenue than expected, a sign that the state is continuing its recovery from the recession.
Revenue collections rose 5.4 percent—exceeding the forecasted 4.5 percent expectations, the governor announced Monday. This is the third year in a row the state has posted a surplus in revenue and the second consecutive year that revenue exceeded 5 percent. Total revenues this year have returned to the amount reached in FY 2008,
The main reasons for the revenue increase include higher individual income tax receipts, lower tax refunds and higher than expected sales and corporate tax collections.
"Virginia continues to demonstrate that conservative fiscal management, a focus on government efficiency, and bi-partisan efforts to bolster our economic development and job creation programs can speed economic recovery in the Commonwealth," Governor McDonnell said in release.
McDonnell made sure to differentiate the outcome in Richmond with what’s happening in Washington.
"For too long, elected officials from both parties have overpromised and overspent, and the result is the fiscal crisis we see unfolding in Washington D.C. Here in Richmond, we are committed to a culture of fiscal responsibility and restraint in state government."
Where will all this money go? According to the governor, $78.6 million will go to the Rainy Day fund, $12.3 million to a water quality fund and any additional funds will go to state employee bonuses.
IN OTHER NEWS:
* President Obama will appear at Loudoun County High School today for a campaign event.
* Apparently, Mayor Gray’s son knows how to party
* D.C. police are expanding an anti-littering pilot program this week that would allow police to fine people $75 for littering in certain parts of the city.
* The Bible museum is coming to D.C. and closed a $50 million deal to locate a few blocks away from the National Mall.
* The Libertarian Party, according to Loose Lips, is suing the Board of Elections over a provision in city law that bans non-District residents from circulating nominating petitions.
* Newt Gingrich campaigned for Romney in Arlington Monday.
* A large group of government contractors gathered in northern Virginia Monday to urge Congress to act before damaging automatic budget cuts take place.