Virginia General Fund Revenue Rises 8% Through First Quarter of FY2027

Virginia’s General Fund collections grew 8.0% year over year through the first quarter of Fiscal Year 2027, an increase of $613.4 million. As of September 2026, revenue was 3.2%, or $253.7 million, above the official forecast. Governor Abigail Spanberger announced the figures on October 16, describing the quarter as a solid start while emphasizing continued national economic uncertainty and the Commonwealth’s focus on responsible financial management. For government contractors, the report is relevant as state budget context—not as evidence that new contract funds have been authorized or made available.

The revenue growth was supported by nonwithholding taxes, corporate income taxes, and sales and use taxes. September revenue alone increased 11.5% compared with September 2025, although the monthly comparison was affected by a difference in withholding deposit days. The state said estimated payments due at the first quarterly deadline lifted individual nonwithholding and corporate income tax receipts well above forecast. Those two revenue sources were together $232 million ahead of expectations and accounted for nearly all of the year-to-date surplus, according to Secretary of Finance Mark D. Sickles.

Sickles also cautioned that these sources are volatile: “They are also among our most volatile revenue streams, and one strong quarter does not make a trend.” Withholding, the state’s largest and most stable revenue source, remained on target in September but was 0.5% below forecast on a year-to-date basis. Sales and use tax collections were up 8.5% year to date and stood 5.8%, or $75.5 million, above forecast. These mixed indicators make the fall forecasting process an important next point for contractors tracking Virginia’s fiscal outlook.

For procurement planning, the figures offer a signal to monitor, not a substitute for budget or solicitation documents. Above-forecast receipts may inform Commonwealth forecasting and budget discussions, but actual agency spending authority depends on subsequent budget decisions, appropriations, and procurement actions. Contractors should avoid treating the reported $253.7 million surplus against forecast as a pool of available contract funding. Instead, they can follow the fall forecasting process, legislative and executive budget updates, agency spending plans, and formal notices for any future opportunities. The release identifies no new procurement, funding commitment, or contract award.

• General Fund revenue grew 8.0%, or $613.4 million, through the first quarter of FY2027.
• Collections were 3.2%, or $253.7 million, above the official forecast through September 2026.
• September 2026 revenue increased 11.5% compared with September 2025.
• Individual nonwithholding and corporate income taxes were collectively $232 million ahead of expectations and made up nearly all of the year-to-date surplus.
• The state identified nonwithholding, corporate income tax, and sales tax receipts as drivers of growth.
• Withholding was 0.5% below forecast year to date; September’s monthly comparison was affected by a difference in deposit days.
• Sales and use tax collections rose 8.5% year to date and were 5.8%, or $75.5 million, above forecast.
• Mark D. Sickles warned that volatile revenue streams and one strong quarter do not establish a trend.
• The Commonwealth will continue monitoring receipts during its fall forecasting process; any procurement effects depend on later budget decisions.
• The announcement contains no new solicitation, contract award, or committed procurement funding; contractors should rely on formal budget and procurement notices for opportunity validation.