Gov. McAuliffe Announces Record Surplus in Virginia for Fiscal Year 2015

Virginia Governor Terry McAuliffe announced Monday that the commonwealth closed the 2015 fiscal year with a surplus of approximately $553.3 million (not including transfers), according to a release from the governor’s office.

That marks the largest fiscal year-end surplus in Virginia’s history, exceeding the $544.6 million surplus 10 years ago in fiscal year 2005, when Mark Warner served as governor.

Gov. McAuliffe also announced Virginia’s revenue picture has satisfied criteria in the state budget to allow for a pay increase for state employees throughout the Commonwealth.

The following individuals throughout Virginia will receive a 2 percent raise for the coming fiscal year, which began on July 1:

• Full-time, classified state employees

• Faculty at public higher education institutions

• Judges and justices of the Judicial Department

• State-supported locally elected Constitutional officers and their full time staffs, such as deputy sheriffs, local health departments and social services offices

• Full-time community services boards’ staff

• All other eligible state-supported employees

The pay increase will be reflected in state employees’ Sept. 1 paychecks, and local school districts will also receive funding for the state share of a 1.5 percent pay increase for all public school positions required by the Standards of Quality.

“Virginia’s significant revenue growth and preliminary year-end revenue surplus are a clear indication that our efforts to grow and diversify our economy are paying off,” Gov. McAuliffe said in the release. “While we still have more work to do to shield our economy from sequestration and federal cuts, there is no question that we are headed in the right direction.”

The release states initial figures indicate total revenue collections rose by 8.1 percent in fiscal year 2015, which would put Virginia well ahead of its revenue forecast of 4.7 percent growth.

The main drivers of the revenue increase were growth in individual income tax receipts from nonwithholding payments, payroll withholding, and lower-than-expected individual income tax refunds, according to the release.

Unfortunately, according to Virginia law, the Revenue Stabilization Fund and the Virginia Water Quality Fund will claim close to $533 million — or 96 percent — of the total revenue surplus before any other allocations are made.

The Governor will present the final fiscal year 2015 surplus tally, including transfers, to the General Assembly Joint Money Committee meeting on Aug. 27.

“These budget numbers are clearly good news, but I intend to maintain a conservative approach as my team and I formulate our next state budget,” McAuliffe said. “I look forward to introducing a budget that maintains our Commonwealth’s fiscal stability while making smart investments in education, workforce development, transportation and health care that will be the foundation for a new Virginia economy.”