RICHMOND, VA — In a letter sent to Senator L. Louise Lucas and Delegate Luke Torian — Chairs of the Senate Finance & Appropriations Committee and House Appropriations Committee, Governor Abigail Spanberger today shared the updated revenue forecast she directed state officials to conduct. The updated revenue forecast projects a $1.5 billion increase in General Fund revenues for Fiscal Years 2026-2028. The reforecast projects that Fiscal Year 2026 revenues will exceed the official forecast by $585.5 million. For Fiscal Years 2027 and 2028, the revised outlook projects an additional $922.6 million in General Fund revenues, of which $582.4 million is identified for Fiscal Year 2027 and $340.2 million for Fiscal Year 2028. “As General Assembly leadership and budget conferees continue their important work, it is critical they have the most current and accurate information available,” said Governor Abigail Spanberger. “While forecasted General Fund revenues have increased, I remain concerned by rising national economic instability, the ongoing conflict in Iran, and the continued impacts of federal workforce cuts. We must account for these evolving economic conditions as we plan for the long-term strength of our Commonwealth.” “The updated forecast confirms that the Commonwealth’s revenue performance remains solid but also factors in the deteriorating economic conditions and increased uncertainty in the national outlook,” said Secretary of Finance Mark D. Sickles. “The additional $1.5 billion in updated projected revenues should provide the General Assembly with enough resources to craft a structurally balanced budget that mitigates any potential risks related to national market volatility.”
On a fiscal year-to-date basis, General Fund revenues have grown 7.3 percent and are ahead of forecast by 3.3 percent. The Commonwealth is $851 million ahead of expectations, however nearly 70 percent ($578 million) is from the most volatile revenue lines: nonwithheld income tax and individual refunds. Click here to read the Governor’s letter and the full updated revenue forecast. |
