Virginia's March revenues post biggest drop in almost 2-1/2 years
WASHINGTON, April 11
WASHINGTON, April 11 (Reuters) - Virginia's revenues declined 6.1 percent in March from the same month in 2012, the largest drop since October 2010 as revenues declined for a second straight month, the state reported on Thursday.
Governor Bob McDonnell said there were three major contributors to the decline: a 42.6 percent fall in corporate income tax receipts; a 10 percent drop in individual nonwithholding payments; and a 1.9 percent fall in sales tax revenues.
"Although March is not a significant month for revenue collections, this month's numbers remind us that our future economic growth is still uncertain," McDonnell said in a statement.
Last March, total revenue collections grew 7.6 percent from the previous year.
Before its revenues fell 2 percent in February, Virginia had mostly posted monthly revenue gains for more than a year and a half. Until then, they had dropped only three other times since July 2011.
Virginia is especially vulnerable to the federal spending cuts known as sequestration because of the military presence in the state as well as heavy federal spending on procurement and salaries. Its proximity to the U.S. capital, however, helped the state emerge from the 2007-09 recession faster than others.
On a year-to-date basis, total revenue collections were up 4.4 percent, beating the forecast for 3.6 percent growth. Virginia's fiscal year began July 1.