BRADENTON, Fla. - Virginia is set to close out fiscal 2015 with its largest-ever year-end surplus, according to Gov. Terry McAuliffe.
The anticipated $553.3 million general fund balance to close the latest fiscal year is 1.57% greater than the former record surplus of $544.6 million in 2005, McAuliffe said July 13.
By law, 96% of the surplus will go to the revenue stabilization fund and the Virginia Water Quality Fund.
The remaining surplus will be used to fully fund 2% pay raises on Sept. 1 for full-time state employees, higher education faculty, judges, and local elected officials supported by the state. Local schools will receive the state's share of a 1.5% pay increase.
"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," McAuliffe said. "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."
Preliminary calculations indicate that Virginia's total revenue collections rose by 8.1% in fiscal year 2015, ahead of the revenue forecast of 4.7% growth.
The main drivers of the revenue increase were growth in individual income tax receipts from non-withholding payments, payroll withholding, and lower-than-expected individual income tax refunds, according to the governor's office.
McAuliffe said he will present the final fiscal year 2015 surplus tally, including transfers, at the General Assembly Joint Money Committee meeting on Aug. 27, 2015.
"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," he 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."
