WASHINGTON Jan 11 Virginia's revenues continued
to grow in December, up 4.9 percent from a year ago due to
strong collections in corporate income tax payments, Governor
Bob McDonnell said on Friday.
Halfway through its fiscal 2013, Virginia is seeing revenues
rise 3.5 percent on a year-to-date basis, close to the annual
forecast of 3.6 percent growth, McDonnell added in a statement.
The state weathered the 2007-09 recession better than most
and entered the recovery quickly, largely due to contractors and
others in the state who work closely with the nearby U.S.
capital. For almost every month in 2012, the state saw its
revenues rise. It did not release revenue estimates for
The federal relationship has turned threatening in recent
months, as Congressional fights over cutting spending spread
into military appropriations and state aid. McDonnell warned
that federal uncertainty is clouding the state fiscal outlook.
According to the state's finance department, corporate
income taxes, which make up 5 percent of general fund revenues,
were $175.1 million in December, compared to $131.7 million in
December 2011. Year-to-date collections of the tax have risen
12.6 percent from the same period last year, "well ahead of the
estimate of a 4.5 percent decline," it said.