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.