Governor Spanberger Announces General Fund Revenues Grew 8.0 Percent Year-Over-Year Through September

RICHMOND, VA - Governor Abigail Spanberger today announced that September General Fund revenues grew 11.5 percent compared to the previous September. Through the first quarter of Fiscal Year 2027, collections have grown 8.0 percent. Growth was driven by strong nonwithholding, corporate income tax, and sales tax receipts. Compared to the official forecast, revenues are ahead of expectations by 3.2 percent.

"The first quarter of Fiscal Year 2027 is off to a solid start, but Virginians continue to feel the strain of national economic uncertainty," said Governor Abigail Spanberger. "The war in Iran continues to fuel inflation and drive up costs for families across the board - prompting the Federal Reserve to raise interest rates. In the face of this uncertainty, I will continue to responsibly manage the Commonwealth's finances, protect our long-term fiscal strength, and focus on making healthcare, energy, and housing more affordable for Virginia families."

"September brings the first quarterly deadline for estimated payments, and both individual nonwithholding and corporate income taxes came in well ahead of forecast," said Secretary of Finance Mark D. Sickles. "Together, those two sources are $232 million ahead of expectations, which accounts for nearly all of our year-to-date surplus. They are also among our most volatile revenue streams, and one strong quarter does not make a trend. Withholding, our largest and most stable source, remains on target, and sales tax continues to outperform. We will continue to watch these trends closely as we move through the fall forecasting process."

On a fiscal year-to-date basis, General Fund revenues have grown 8.0 percent ($613.4 million) and are ahead of forecast by 3.2 percent ($253.7 million). September's monthly growth was boosted by a difference in withholding deposit days compared to last September; year-to-date, withholding is 0.5 percent below forecast. Sales and use tax collections are up 8.5 percent year-to-date and are 5.8 percent ($75.5 million) ahead of forecast.

The full September 2026 revenue report is available here.

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