Tax Revenue Drops 9.3 Percent, Kaine Says

By Rosalind S. Helderman

Tuesday, June 16, 2009

Virginia budget numbers continue to erode as tax revenue falls in the down economy. Gov. Timothy M. Kaine (D) announced yesterday that state revenue collections have dropped 9.3 percent this year, eclipsing an estimated drop of 7.3 percent.

Revenues that feed the state's general fund have declined 15.6 percent compared with May 2008. The decline has come as individual and corporate income tax collections by the state have dropped dramatically, as have recordation tax collections. Other sources of state revenue have also been declining, including sales tax and lottery revenue.

The General Assembly this year passed a two-year, $77 billion budget that closed a $3.7 billion shortfall, in part by employing $1.5 billion in federal stimulus money. The legislature also agreed to make deep cuts to services, and 379 state employees were laid off between July 1 and March 31. Kaine said the continued revenue drop means the state might have to make further cuts.

Tagged: Economy, Gov. Tim Kaine, State news, taxes

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