(Matt Demlein, WRVA)

Virginia Has Large Budget Surplus

Money Headed To Help Reserve Funds

July 12, 2018 - 3:33 pm

Richmond, VA (wrva.com) -  Virginia ended the 2018 fiscal year on July 1st with a nearly $552 million surplus.  The money came primarily from higher than expected payroll atx collections, a sign that both job and wage growth are growing.

State Finance Secretary Aubrey Layne says much of the surplus is being dedicated to the Rainy Day fund and to cash reserves.  This will give Virginia an over $800 million cushion in case of an economic downturn.  The move also, according to Layne, protects the state's Triple-A bond rating, allowing the state to borrow money at the lowest rates. 

Medicaid expansion did not play a role in the surplus.  Federal money being made possible by expansion will not enter the state pipeline until next year.