Virginia's General Fund revenues grew 8.0 percent through the first quarter of fiscal year 2027, Gov. Abigail Spanberger announced, outpacing the official forecast by 3.2 percent. September revenues alone jumped 11.5 percent compared to the previous September.
Strong nonwithholding, corporate income tax, and sales tax receipts drove the growth, according to the governor. Secretary of Finance Mark D. Sickles said nonwithholding and corporate income taxes combined came in $232 million ahead of expectations, accounting for nearly all of the year-to-date surplus.
Sickles cautioned that the strong quarter may not indicate sustained growth. "They are also among our most volatile revenue streams, and one strong quarter does not make a trend," he said. Withholding, the state's largest and most stable revenue source, remains on target, and sales tax continues to outperform, he added.
Sales and use tax collections rose 8.5 percent year-to-date and are 5.8 percent ($75.5 million) ahead of forecast. Overall, General Fund revenues have grown $613.4 million through the first quarter and are ahead of forecast by $253.7 million.