State budget outlook
Last month’s budget update by the Governor contained some good news– state revenues ended the biennium in June with $321.7 million in unanticipated revenues. Corporate income taxes grew by 2%–in contrast to the previous prediction of a 4.9% decline. Other revenues from the recordation tax, the insurance premium tax and all other revenue sources exceeded estimates.
Commonwealth Transportation Fund revenues fell below estimates by $3.4 million, but the good news is that Fund revenues increased for the first time since 2008, and, because of additional revenues, the Revenue Stabilization (“rainy day”) Fund contribution increased by $440.5 million.
In November, the Governor’s Advisory Council on Revenue Estimates will forecast revenues for fiscal year 2012 and FY 2013-2014. In December the Governor will propose the 2013 -2014 fiscal year budget.
According to the Budget staff , the downgrading of U.S. credit will not negatively impact state budgets, and Standard & Poor’s will allow state and local governments to have a higher rating than the U.S.
Of course, Virginia’s AAA credit rating is carefully protected by all parties, and the House Appropriations and Senate Finance will meet on a monthly basis through the end of the calendar year to insure current state Budget goals are being met.
In January, when the House and Senate meet on the second Wednesday, the process for considering the next fiscal year budget (FY 2013-14) will begin.
House and Senate “money” (House Appropriations and Senate Finance) committees and subcommittees meet on a daily basis while the General Assembly is in session, which is scheduled to adjourn 60 days after convening.
Congratulations to Holmes Run Acres
On October 15 the Holmes Run Acres community will celebrate its 60th anniversary at the State Theatre. I look forward to joining many current and former residents and elected officials in celebrating a beautiful, active and thriving community that I have been pleased to represent as Providence Supervisor and now as a member of the House of Delegates. I will present an official commending resolution adopted unanimously by the Virginia House and Senate.
Delegate Scott represents the 53rd District in the Virginia House of Delegates. He may be emailed at [email protected]