(The Center Square) – Virginia ended the 2025 budget year with nearly $2.7 billion in general fund surplus, according to preliminary figures released by Gov. Glenn Youngkin’s office.
That total includes $572 million in year-end revenue that came in above forecast, on top of the $2.1 billion surplus already included in the commonwealth’s two-year budget. The general fund is the commonwealth’s main source of revenue for core services like public education, health care and public safety.
Overall, Virginia brought in $31.2 billion in general fund collections for fiscal year 2025, marking a 6.1% increase over the previous year and 9.3% above the original forecast.
June, the final month of the fiscal year, came in $83.7 million ahead of projections. Revenue for the month grew 7.2%, or by $212.6 million compared to June 2024.
Net individual income tax collections finished the year $334.3 million above forecast and up nearly $1.6 billion over the prior year. Corporate income tax revenue was $87.1 million above forecast. Payroll withholding grew by $842.9 million year-over-year but came in slightly below forecast. Sales tax revenue was up $103.1 million over last year.
“Virginia has never been in a stronger position financially,” said Youngkin in a statement. “Virginia outperformed original projections for fiscal year 2025 by nearly $2.7 billion enabling us to provide $1 billion of additional tax relief, fully-fund Medicaid and other critical services, and continue our historic investments in K-12 education. The fiscal management of our administration has collectively led to four consecutive years of surplus revenues and unexpended balances of approximately $10 billion.”
Since 2022, Virginia has provided $9 billion in tax relief and increased investments in education, law enforcement, behavioral health and economic development, according to Youngkin. He said those efforts have helped attract more than $125 billion in private capital and positioned the commonwealth as a top destination for business and talent.
Secretary of Finance Stephen Cummings said Virginia now has a cash position of nearly $1.5 billion, including $900.5 million in unspent balances carried over from earlier budget actions. He said economic conditions remain in line with expectations for the fourth quarter of FY25 and into FY26.
Virginia uses a two-year budget cycle. Each December, the governor proposes changes or a new budget, and lawmakers return in January to review those proposals, hold hearings, and vote on spending priorities, including how to use any remaining surplus. Most of the money is already required to go into reserves or one-time funds, but final decisions on what’s left will play out in the next session.
Final accounting and adjustments for fiscal year 2025 will be released Aug. 14, when Youngkin presents the closeout report to the Joint Money Committee.
