McDonnell Announces Budget Surplus

In January, the Commonwealth was experiencing a 1.8 billion dollar budget shortfall.  Yesterday Governor McDonnell announced that due to larger than expected individual and corporate income tax collections, Virginia has closed its fiscal year with a surplus of at least 220 million dollars.

As he pledged months ago, the Governor said that part of the funds would go to paying state employees a three percent bonus.

During the 2007 General Assembly session, the legislature decided that two-thirds of undesignated surplus balances would go to the transportation trust fund, which will amount to approximately 20 million dollars.  Other areas scheduled to receive surplus dollars include 18 million for local schools and 22 million for Chesapeake Bay clean up efforts.

Governor Bob McDonnell.

McDonnell:  There are still uncertainties in this economy and while these numbers are a positive sign for our citizens in Virginia, there is much hard work to be done and it is no time to let up on conservative budgeting. 

McDonnell was questioned as to whether the surplus was a result of a requirement that state retailers accelerate sales tax receipt payments in June, a change made during the 2009 session under Governor Tim Kaine.  Both Governor McDonnell and Finance Secretary Ric Brown said this had no effect on the surplus.

Craig Carper, WCVE News, Capitol Square