Virginia General Fund Revenues Lag In September | WAMU 88.5 - American University Radio

WAMU 88.5 : Morning Edition

Filed Under:

Virginia General Fund Revenues Lag In September

Play associated audio

Falling tax revenues in Virginia are lagging behind the forecasts used to craft the state's two-year spending plan, and Finance Secretary Ric Brown believes the uncertainty surrounding federal spending may be creating a drag on economic activity.

Revenues fell 0.7 percent in September, the third monthly decline in four months. Overall, general fund revenues for the first fiscal quarter are 1.3 percent higher than at this point last year — but that's below the forecast of 2.9 percent growth. 

While individual income revenues barely increased, sales tax collections rose by 10.4 percent. But corporate income taxes were way below the forecast,  falling by 17.7 percent, Brown said. Large companies accounted for much of that.

"Retail sales and 'other' were the big negatives. I also should say probably energy. It was minus 11.5 percent," Brown said. "When you look at what's included in that  other category, 50 percent of it basically falls in tobacco, financial activities, and telecommunications."

Uncertainty over federal policies is due to potential sequestration and to business worries over a proposed capital gains tax increase in January, Brown said. 

The Governor's Advisory Council will meet next month to reassess the revenue forecast. 

WAMU 88.5

Art Beat With Lauren Landau, July 28

You can see two solo exhibits featuring work that speaks in metaphor.

Fast-Food Scandal Revives China's Food Safety Anxieties

An American-owned company that supplies meat to fast-food chains in China has pulled all its products made by a subsidiary. An expose revealed some of the products were mishandled and had expired.

When Did Companies Become People? Excavating The Legal Evolution

The Supreme Court has been granting more rights to corporations, including some regarded as those solely for individuals. But Nina Totenberg finds the company-to-person shift has a long history.

What It's Like To Own Your Very Own Harrier Jump Jet

The Harrier Jump Jet is known for vertical take-offs and landings. It also has an accident-prone track record, but that didn't dissuade one pilot from buying his dream plane.

Leave a Comment

Help keep the conversation civil. Please refer to our Terms of Use and Code of Conduct before posting your comments.