Virginia’s revenues in December decreased by 4.7 percent over the prior year.
State officials attribute the decline to the calendar (four Wednesdays instead of five Wednesdays), lower returns on corporate income tax payment and insurance premiums tax payments.
On a year-to-date basis, revenue collections rose 4.2 percent, slightly behind the revised annual forecast of 4.6 percent growth.
“Virginia’s economy continues to grow and recover from the economic challenges of past years, but the rate of growth has slowed. December’s falling revenue numbers are by no means a cause for panic, but they do call for a continuation of a conservative fiscal approach as the General Assembly considers my proposed biennial budget,” Gov. Bob McDonnell (R) said.
The state issued its general fund revenue forecast in December, revising total general fund revenues to grow by 4.6 percent in fiscal 2012.