Gov. Bob McDonnell Monday announced state revenue commissions rose 7.6 percent in March from February's revenue report, according to a press statement released by the governor's office, which added that sales and income tax receipts can explain the increase.
"Sales tax receipts increased by 11.1 percent in the month," according to Monday's press release. "On a year to date basis, sales tax collections have risen 5.7 percent, compared to a projected annual growth of 1.8 percent, [and] compared to March 2011, corporate income tax receipts have grown 16.4 percent."
Assoc. Economics Prof. Leora Friedberg acknowledged the growth and said local revenues mirrored the state growth.
"State tax revenue does look like a pretty strong indicator of what's happening with the economy, and local revenues are also up in Charlottesville and Albemarle County, and these are all indicators that people are spending and employers are hiring," Friedberg said.
She added that a variety of factors, including the winter's mild temperatures, could have contributed to the revenue commissions increase.
"There's ... this idea that the winter was so mild, that the economic activity didn't have it's normal lull," Friedberg said. "Some of the winter growth would have been spring growth.
"Virginia's unemployment rate has also drastically decreased, which McDonnell called a "bipartisan accomplishment."
"Unemployment is now at 5.7 percent, the lowest rate in over three years," McDonnell said in the press release. "It is good news, but there is much work left to be done before all Virginians will have the good work they need and deserve."
Albemarle County spokesperson Lee Catlin said the county's unemployment levels have followed the state trends.
"We have been seeing more jobs within the community in the last couple months," Catlin said. "We do see that things seem to be looking more promising than in the past few years."
The General Assembly was expected to pass a budget yesterday, which McDonnell said is vital to continue Virginia's economic growth in the coming months.
"It is imperative that we pass a budget tomorrow in order to ensure that this recovery is not hindered, and our state economy can continue to grow, creating good jobs for citizens in all areas of the Commonwealth," McDonnell said in the press release.
The Senate, however, blocked the budget yesterday evening for the third time this fiscal year.
The state government now faces a government shutdown in as few as 10 weeks unless the General Assembly can forge a consensus.
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