Virginia's general fund revenues increased 5.4 percent during the first two months of Fiscal Year 2027, through August, compared to the same period last year, according to Governor Abigail Spanberger.
August revenues alone increased 2.8 percent compared to August of the prior year, driven primarily by strong sales tax receipts that grew 4.0 percent for the month.
Year-to-date through August 31, General Fund revenues are up $236.5 million compared to the same period last year and are ahead of the official forecast by $81.5 million, or 1.8 percent.
Secretary of Finance Mark D. Sickles said the state was "concerned by persistently high core inflation and the resulting increased likelihood of a Federal Reserve rate hike."
Withholding collections came in $37.3 million below forecast for August, though Sickles noted this was well within the normal range of monthly variance for that revenue source.