McAuliffe: Virginia's Economy Is ‘Back'

Virginia Gov. Terry McAuliffe is touting higher-than-expected state tax revenues as a sign that Virginia's economy has recovered from the Great Recession.

The state's revenues were $553 million more than projected for the last fiscal year that ended in June, McAuliffe said at a news conference Monday. The revenue numbers are an all-time high for the commonwealth, he said.

The extra revenues, mostly due to income tax collections, will be set aside in the state's rainy day fund. The extra money means the state will be able to go ahead with pre-approved raises of 2 percent for state workers.

McAuliffe said that while Virginia's economy is “back,” he's still concerned about what effects federal defense spending cuts may have on Virginia's financial health.

Copyright AP - Associated Press
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