WASHINGTON, April 11 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
"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
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
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.