Year-to-Date Revenues Still Running Ahead of Projections

RICHMOND, VA – Governor Glenn Youngkin announced the general fund revenue collections for March 2023 unadjusted for policy or timing impacts, fell by 3.8 percent compared to March 2022 mainly due to higher refund issuance. On a fiscal year-to-date basis, revenues are 0.6 percent higher than the same period last year. Relative to the official forecast updated in December, unadjusted general fund revenues are ahead of forecast by $124.2 million year-to-date. 

“March’s revenue numbers, once again, demonstrate there’s plenty of money available to lower costs for families and local businesses. We can also fund those most critical investments in education, safer communities and transforming the way behavioral health care is delivered for Virginians,” said Governor Glenn Youngkin. “We remain in an and moment, not an or moment on tax cuts and key investments in the Commonwealth. The silent thief of inflation continues to steal the hard-earned paychecks of Virginia families and I encourage Senate Democrats to come together with House Republican leaders and let’s deliver for Virginians together. 

“The modest year-over-year decline in net revenues was anticipated in our December forecast,” said Secretary of Finance Stephen Cummings. “Overall general fund revenue collections continue to exceed projections, adding to our confidence in our estimate of $3.6 billion in available funds to implement of the Governor’s proposed policy initiatives.” 

March marks the beginning of the tax processing season which peaks from mid-April to early May. The forecast projects an overall decline in total tax due payments primarily due to last year’s decline in equity markets and the increase in the standard deduction. Through March, individual income non-withholding collections, which includes final tax payments, are well above projections, up 2.5 percent year-over-year after adjusting for policy changes. 

The full March 2023 revenue report is available here.