In Critical Month Revenue Collections Remain Consistent with Updated Forecast

By: Office of the Governor, Commonwealth of Virginia

RICHMOND, VA – Governor Glenn Youngkin announced year-to-date general fund revenues remain ahead of the updated December 2022 forecast by nearly $500 million. Revenue collections were 2.7 percent higher in the first ten months of FY 2023, adjusted for policy or timing impacts, unadjusted revenue collections declined 8.2 percent in April, down 0.9 percent fiscal year-to-date.  

“As the most significant revenue collection month for Virginia, April provides with the clearest picture to-date that our December forecast continues to be an accurate model of the financial state of the commonwealth,” said Governor Glenn Youngkin. “Our government remains in a strong position to accelerate results for Virginians with transformational investments in behavioral health care, community safety, child literacy and Virginia’s energy future. At the same time, Virginia can reduce taxes and lower the cost of living for local businesses and families throughout the commonwealth. There’s plenty of money flowing into the system to continue delivering results for Virginians.” 

“Revenues declined less than expected in April,” said Secretary of Finance Stephen Cummings. “As a result, year-to-date collections are now ahead of the December forecast by nearly $500 million, and we anticipate that full fiscal year collections will exceed projections. The economic downturn that was assumed in our forecast in the current fiscal year is now likely to materialize two to three quarters later than expected. Consequently, any revenue surplus in the current fiscal year may offset lower revenues in fiscal year 2024.” 

In addition to the typical withholding and sales tax collections, April revenues include final and estimated payments for individuals, insurance companies, and most corporations are remitted, making April the most significant revenue collection month in the fiscal year.  

The full April 2023 revenue report is available here