.

$438.5 Million Revenue Shortfall as Virginia Fiscal Year Ends

Virginia finished the fiscal year with $438.5 less revenue than anticipated, marking a 1.6 percent drop from last year that could lead to future budget cuts.

Patch File Photo
Patch File Photo
Virginia finished the 2014 fiscal year with $438.5 less revenue than anticipated, marking a 1.6 percent drop from last year and the first revenue drop outside of a national downturn.

Gov. Terry McAuliffe (D) announced the news Thursday but did not say whether the shortfall would lead to budget cuts.

State officials anticipated the drop due to lower-than-expected tax revenues from capital gains like stock market investments and real estate. The two-year budget that ended in June included sufficient balances that will cover the revenue deficit, The Washington Post reports, so Virginia is not "in the red" just yet.

The money being used to fill the deficit would have rolled over into the new two-year budget that began July 1. State officials took this loss into account when determining Virginia's new two-year budget would have to project a $1.5 billion shortfall.



Boards

More »
Got a question? Something on your mind? Talk to your community, directly.
Note Article
Just a short thought to get the word out quickly about anything in your neighborhood.
Share something with your neighbors.What's on your mind?What's on your mind?Make an announcement, speak your mind, or sell somethingPost something
See more »