BY JEFF E. SCHAPIROTIMES-DISPATCH STAFF WRITER Tuesday, October 17, 2006
Even with the economy slowing, cash is still flowing to the Virginia treasury well ahead of Gov. Timothy M. Kaine's forecast.
In September, general fund revenues -- mostly from income and sales taxes -- increased 6.3 percent from the same month a year ago, the Kaine administration said yesterday.
For the year to date, revenues are up 7.6 percent, almost twice the 4.2 percent initially projected.
The Democratic administration released the latest revenue snapshot in a presentation to the House Appropriations Committee by Secretary of Finance Jody M. Wagner.
Brisk revenue collections over the past year were among the reasons the Republican-controlled House of Delegates blocked Kaine and a bipartisan coalition in the Virginia Senate on new taxes for transportation.
Wagner said revenues swelled in September because quarterly estimated payments on individual, corporate and insurance-premium taxes were due, along with collections on sales and withholding taxes.
Wagner said September collections were fueled by an unusually large corporate payment because of capital gains. If that payment is peeled out of the monthly report, revenue growth for September was only 4 percent.
With the stock market strengthening, non-wage income such as dividends was up. However, recordation taxes -- paid on real estate closings -- were down because the housing market was sluggish. As for employment, payroll statewide was up only 1.5 percent. Northern Virginia remained the hottest job market, with employment growing at twice the state rate.
Hampton Roads was up 1.7 percent, while the Richmond-Petersburg area and the heavily rural markets in western Virginia reported 1.2 percent growth.
Contact staff writer Jeff E. Schapiro at jschapiro@timesdispatch.com or (804) 649-6814.
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