The Surplus

This morning I was very pleased to announce that Virginia finished Fiscal Year 2011 with a surplus of $544.8 million. This is the second year in a row that we have posted a budget surplus. We have done this by budgeting conservatively, keeping taxes low, reforming how state government works, and investing wisely in core functions of government crucial to private sector job creation and economic development.

Put simply, we brought in more revenue than expected, and spent less than budgeted. Our fiscally responsible course has led to economic growth in the Commonwealth, as the seasonally-adjusted unemployment rate has fallen over one full point since February 2010 – and is now the third-lowest rate east of the Mississippi. More Virginians are working and spending, and that can be seen in the revenue growth that is responsible for more than one-half of this surplus. At the same time, our efforts to reform state government and make it function more efficiently have also produced savings.

The top priority of my administration has been to generate economic growth and job creation in the private sector while implementing common sense, fiscally conservative policies that cut spending, refocus government on its core functions, and do not raise taxes on hardworking Virginians. Working together, across party lines, we’ve made some progress. The early results we’re achieving here in Richmond by bringing Republicans, Democrats and Independents together to tackle our biggest fiscal and economic challenges in a productive and responsible way would not be possible without you.

Thank you very much for your thoughts, prayers, and continued support.

Sincerely,

Bob McDonnell