COVID-19, Supply Chain Issues Slowing Virginia’s Economic Recovery

Virginia’s financial position continues to improve after COVID-19’s impacts in 2020, but the fast-paced recovery seen earlier in the year is slowing, Secretary of Finance Joe Flores told legislators in an update on Monday and Tuesday.

“The bottom line is that we’ve hit a few roadblocks in the past month or so with the resurgence of the virus, especially the Delta variant, and some supply chain issues. But you’re going to see from this report, as you mentioned Madam Chair, that the current revenue performance continues to just chug along. We’re doing actually very well, and it’s suggestive of a recovering economy,” Flores told the Senate Finance and Appropriations Committee on Tuesday.

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In Joint Finance Committee Meeting Gov. Northam Highlights Virginia’s $2.6 Billion Surplus and Economic Recovery

Gov. Ralph Northam

Governor Ralph Northam touted Virginia’s 2021 $2.6 billion surplus and economic recovery in his annual revenue speech to a joint meeting of the Senate Finance and Appropriations, House Appropriations, and House Finance Committees.

“I am here today to update you on the Commonwealth’s revenues for the fiscal year that ended on June 30. And it’s good news. Really good news,” he said, according to prepared remarks of the Wednesday speech.

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Virginia Gov. Northam Proposes $353 Million for Small Business Recovery, Tourism from ARPA Funds

Governor Ralph Northam issued his first proposal for spending American Recovery Plan Act (ARPA) funds Monday. Northam’s $353 million proposal includes $250 million for the Rebuild VA small business fund. It also includes $50 million for state agency the Virginia Tourism Corporation (VTC), and $53 million for the Industrial Revitalization Fund and the Virginia Main Street program.

“Virginia is roaring back stronger than we could have imagined one year ago, but small businesses are the backbone of our economy, and they need additional support to get back on their feet,” Northam said in a Monday announcement.

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Advocates Say Millions of Dollars Needed to Help Virginia Tourism Recover

Virginia’s economy is recovering, but Virginia Tourism Corporation (VTC) President Rita McClenny told legislators this week that a major infusion of $50 million is needed to help the struggling tourism sector.

“The $27 billion tourism engine stalled out in 2020 as a result of the global pandemic. Every component sector was negatively impacted: lodging, food service, attractions, business, conventions,  events, transportation, entertainment and recreation. The entire sector needs financial recovery support,” McClenny told the Senate Finance and Appropriations Committee.

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Virginia General Assembly Special Session Set for August

The Virginia General Assembly’s second 2021 special session is scheduled for August 2. One of the top priorities for the legislators will be allocating American Rescue Plan Act (ARPA) funds. Although Virginia has already received the money, it can’t be spent until the legislators allocate it.

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Governor Northam Outlines Budget Recommendations with Focuses on COVID-19, Education

Virginia Governor Ralph Northam unveiled his recommendations for the biennial budget on Wednesday with big spending toward the state’s continued response to the COVID-19 pandemic, public education and other items.

The governor presented his budget proposals to lawmakers during a joint virtual meeting of the House of Delegates and Senate appropriation committees.

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COVID Lockdowns a Boon for Virginia Lottery

The Virginia Lottery recorded $2.15 billion in sales during 2020, slightly lower than the 2019 figure, despite facing statewide shut downs in the spring and the growing economic downturn brought on by the coronavirus pandemic.

Kevin Hall, executive director of the Virginia Lottery, gave a presentation Tuesday to members of the Senate Finance and Appropriations Committee, providing updates on the current trend and forecast as well as the implementation of expanded gaming options coming to the state.

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