October revenue collections increased by 3.1 percent over the prior year. That made for the 19th month out of the last 20 in which monthly state revenue collections exceeded the amount collected 12 months earlier.
However, McDonnell warned that slowing growth, uncertainty about federal funding and the ailing national economy put that trend at risk — something he said he’ll keep in mind as he and his budget officials prepare the 2012-14 budget.
“While Virginia’s economy continues to grow and recover from the economic challenges of past years, that rate of growth has slowed somewhat in recent months,” McDonnell said. “All indicators at the state, national and global levels continue to urge caution as our economy struggles to regain its footing.”
Details on October revenue below.
Here are details on the October revenue picture, from a news release from the governor’s office:
.“October is not a significant month for revenue collections. The revenue increase was primarily driven by a 5.3 percent growth in individual income tax withholding payments, a 5.0 percent increase in individual income tax non-withholding payments, and a 2.9 percent growth in sales and use taxes. Conversely, receipts for corporate income tax fell by 55.1 percent. On a year-to-date basis, total revenue collections have risen 5.8 percent, ahead of the revised annual forecast of 3.7 percent growth. Adjusted for the accelerated sales tax program, state revenues have grown 5.0 percent, ahead of the economic base forecast of 3.5 percent growth. Corporate fell 55% for the month as the refunding season kicked off with extension returns being filed on October 15th. A complete picture of corporate refunds will be known after December.”