Virginia ended Fiscal Year 2021 with a $2.6 billion surplus, the largest in Virginia’s history, with a 14.5 percent revenue growth over FY 2020.
“We have effectively managed Virginia’s finances through the pandemic, and now we are seeing the results—record-breaking revenue gains, a recovery that has outpaced the nation, and recognition as the best place to do business,” Governor Ralph Northam said in a press release.
Virginia saw a 66.2 percent General Fund revenue increase in May according to a Friday announcement from Governor Ralph Northam. He also announced the appointment of Joe Flores as the new Secretary of Finance, and a Return to Earn Grant program to help provide bonuses to new hires at small businesses.
“Virginia’s economy is roaring back to life thanks to hard work following the science and one of the strongest pandemic responses in the country,” Northam said in a press release.
The American Rescue Plan will provide $7.2 billion for Virginia: $2.9 billion allocated for municipalities, and $4.3 billion for the state government, according to a Tuesday announcement from Senators Mark Warner and Tim Kaine. On Wednesday, Governor Ralph Northam and Democratic General Assembly leaders released their priorities for the $4.3 billion, including upgrading public health infrastructure, funding the Rebuild Virginia small business recovery plan, adding funds to the Unemployment Trust Fund, modernizing public schools, and deploying broadband across Virginia.
Congress passed the CARES Act last March, sending many taxpayers $1,200, giving $100 billion to health providers, and boosting unemployment benefits by $600 a week, according to Govtrack. The $2 trillion stimulus bill also sent $150 billion to states and localities across the country. Virginia received about $3.1 billion dollars, with a separate $200 million sent directly to Fairfax County.