Virginia Governor Abigail Spanberger today informed General Assembly leadership of an updated revenue forecast projecting a $1.5 billion increase in General Fund revenues for Fiscal Years 2026-2028. This revised outlook was shared in a letter to Senator L. Louise Lucas and Delegate Luke Torian, chairs of the Senate Finance & Appropriations and House Appropriations Committees.
The forecast indicates Fiscal Year 2026 revenues will exceed the official projection by $585.5 million. For Fiscal Years 2027 and 2028, an additional $922.6 million in General Fund revenues is projected, with $582.4 million for FY2027 and $340.2 million for FY2028.
Despite the positive update, Governor Spanberger expressed caution. "While forecasted General Fund revenues have increased, I remain concerned by rising national economic instability, the ongoing conflict in Iran, and the continued impacts of federal workforce cuts," she said, urging consideration of evolving economic conditions.
Secretary of Finance Mark D. Sickles affirmed the Commonwealth's solid revenue performance but acknowledged "deteriorating economic conditions and increased uncertainty in the national outlook." He said the additional $1.5 billion should help the General Assembly craft a "structurally balanced budget."
Fiscal year-to-date, General Fund revenues have grown 7.3 percent, exceeding forecasts by 3.3 percent, putting the Commonwealth $851 million ahead of expectations. However, nearly 70 percent ($578 million) of this surplus comes from volatile revenue lines like nonwithheld income tax and individual refunds.