Economic Outlook and Revenue Forecast...to the 2018-2020 Budget Economic Outlook and Revenue...

Governor Northam’s Proposed Amendmentsto the 2018-2020 Budget

Economic Outlook and Revenue ForecastA Briefing for the Senate Finance,

House Appropriations and House Finance Committees

December 18, 2018

Aubrey L. Layne Jr., MBA, CPASecretary of Finance

Commonwealth of Virginiawww.finance.virginia.gov

1

Outline

• Fiscal Year 2018 Year-in-Review

• U.S. and Virginia Economic Outlook

• December Revenue Forecast

• November Revenue Collections

• Next Steps

2

5.4%

3.0% 4.1%

4.9% 4.9%

5.9% 5.8%

6.2%5.2%

6.7% 6.1% 6.3%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Growth in Total General Fund Revenue CollectionsFY18 Monthly and Year-to-Date

Monthly Year-to-Date

• Total general fund revenue collections exceeded the forecast by $552.6 million, excluding transfers in fiscal year 2018, a forecast variance of 2.9 percent.

• Total general fund revenues rose 6.3 percent, ahead of the annual forecast of 3.4 percent.

Forecast: 3.4%

Monthly Growth: 5.4% 1.1% 5.5% 7.7% 4.9% 10.0% 5.1% 10.9% -3.5% 17.8% 1.4% 7.9%

Fiscal Year 2018 General Fund Revenue Grew at an Average Pace of 6.3 Percent

3

Including Transfers, Fiscal Year 2018General Fund Resources Grew 6.0 Percent and Finished

$555.5 Million (2.8 Percent) Above Forecast

• The gain in net individual income tax and sales tax, about $618 million, was somewhat offset by shortfalls in all other revenue sources.

Summary of Fiscal Year 2018 Revenue Collections(millions of dollars)

Major Sources Official Actual ChangeWithholding 61.5% $12,313.3 $12,540.5 $227.2 3.5 % 5.4 %Nonwithholding 15.6 3,147.3 3,472.9 325.6 4.3 15.1Refunds (9.6) (1,968.7) (1,907.6) 61.1 5.8 2.5

Net Individual 67.5% $13,491.9 $14,105.8 $613.9 3.4 % 8.1 %

Sales 17.4% $3,458.2 $3,461.8 $3.6 3.0 % 3.1 %Corporate 4.3 874.0 861.9 (12.1) 5.7 4.2Wills (Recordation) 2.0 407.2 394.9 (12.3) 3.3 0.1Insurance 1.8 362.1 337.9 (24.2) 6.2 (0.9)All Other Revenue 3.7 734.8 718.5 (16.3) 1.6 (0.6)

Total Revenue 96.6% $19,328.2 $19,880.8 $552.6 3.4 % 6.3 %

A.B.C. Profits 0.6 $104.1 $109.5 $5.4 (5.8) % (0.9) %Sales Tax (0.375%) 1.9 379.1 376.6 (2.5) 3.6 2.9Transfers 0.9 142.1 142.2 0.1 (19.7) (19.6)

Total Transfers 3.4% $625.3 $628.3 $3.0 (4.3) % (3.8) %

TOTAL GENERAL FUND 100.0% $19,953.5 $20,509.0 $555.5 3.1 % 6.0 %

As a % of Total General Fund

% Growth Over FY 17Official Actual

4

Recent National and State Economic Indicators Suggest Continued Expansion

• According to the second estimate, real GDP grew at an annualized rate of 3.5 percent in the third quarter of 2018, down from 4.2 percent in the second quarter.

• Payroll employment growth slowed in November, rising by 155,000 jobs after adding 237,000 in October.

• The national unemployment rate remained at 3.7 percent in November.

• Initial claims for unemployment fell by 4,000 to 231,000 during the week ending December 1. – The four-week moving average rose by 4,250 to 228,000. Claims are volatile

this time of year and the reporting period included the Thanksgiving holiday.

• The Conference Board’s index of consumer confidence fell 2.2 points in November to 135.7. Confidence remains strong, with both components near their highest levels since 2000.

• The Conference Board’s index of leading indicators rose 0.1 percent in October, suggesting the expansion should continue.

• Conditions in the manufacturing sector improved in November. The Institute of Supply Management index rose from 57.7 to 59.3.

5

Recent National and State Economic Indicators Suggest Continued Expansion (continued)

• The CPI rose 0.3 percent in October after a 0.1 percent gain in September and stands 2.5 percent above October 2017. – Core inflation (excluding food and energy prices) rose 0.2 percent, and has

increased 2.2 percent from last year.

• At its November meeting, the Federal Reserve left the federal funds rate target unchanged at 2.00 to 2.25 percent.

• In Virginia, employment growth remains solid. Payroll employment rose 2.6 percent in October from a year ago.– Northern Virginia posted growth of 2.7 percent, Hampton Roads grew 1.9

percent, and Richmond-Petersburg rose 2.5 percent.– The seasonally adjusted unemployment rate held steady at 2.9 percent and

stands 0.7 percentage point below October 2017.

• The net impact of federal and state tax relief to Virginians from the Tax Cuts and Jobs Act (TCJA) is projected to be about $4 billion per year.

6

Fiscal Year 2019 Year-to-Date Revenue Collections Through November

-1.2%

1.9%2.7% 4.5%

3.4%

-2%

0%

2%

4%

6%

8%

10%

12%




Forecast: 1.5%

Monthly Growth: -1.2% 4.5% 4.0% 10.2% -1.3%

• Total general fund revenues decreased 1.3 percent in November.– Payroll withholding in November had one less deposit day.

• On a year-to-date basis, total revenues increased 3.4 percent, ahead of the annual forecast of a 1.5 percent increase.

7

Fiscal Year 2019 Year-to-Date Smoothed Revenue Collections Through November

-1.2%

1.9%2.7% 2.3%

3.4%

-2%

0%

2%

4%

6%

8%

10%

12%




Forecast: 1.5%

Monthly Growth: -1.2% 4.5% 4.0% 0.8% 7.6%

• Total general fund revenues are adjusted for the extra October deposit day being counted as November revenue.

– Each month now has the same number of deposit days.

• For illustrative purposes only.

8

Fall 2018 Consensus Forecasting Process

• Joint Advisory Board of Economists (JABE) met October 11th.

– The September standard forecast was a bit stronger than the standard outlook adopted last year; 10 members voted for the standard, 4 members thought that Virginia would do better than the standard in the short-term, no members voted for the pessimistic, and no members supported the Moody’s Analytics forecast.

• Governor’s Advisory Council on Revenue Estimates (GACRE) met November 19th.

– Members evaluated JABE recommendations, revenue collections through October, and the associated revenue forecasts for the FY18-20 biennium.

– At the GACRE meeting, 11 business members voted for the standard. 1 member voted for a standard plus forecast and 1 for a standard minus forecast for the FY18-20 biennium.

• No members were expecting a recession to start in this biennium.

9

GACRE Members Concurredwith the JABE Recommended Forecast

• IHS Markit October U.S. standard forecast reflects economic growth slightly higher than the Official October forecast. – As a result, FY19 real GDP is expected to grow 3.0 percent, personal income is

expected to grow 4.4 percent, and employment is expected to grow 1.6 percent.

• With the advice of JABE and GACRE, the October 2018 Virginia Economic Outlook for FY19-20 remains the standard forecast and is higher than the Official (Oct. ‘17) forecast for employment and in line with the Official forecast for the income variables.

Key Virginia Economic IndicatorsOfficial and October Standard Forecasts

Annual Percent Change

Fiscal Year17 18 19 20 21 22

EmploymentOfficial (Oct. '17) 1.2 1.3 1.0 0.8 0.7 0.7Oct. Standard 1.4 1.7 1.1 0.6 0.3

Personal IncomeOfficial (Oct. '17) 2.4 3.3 4.3 4.6 4.5 4.1Oct. Standard 4.1 4.1 4.8 4.6 4.5

Wages & SalariesOfficial (Oct. '17) 2.7 3.6 4.4 4.0 4.0 4.0

10

Key U.S. and Virginia Economic IndicatorsU.S. October 2018 Standard and Virginia Standard Forecast

(annual percent change)

Virginia’s Economy Is Expected To Mirror National Trends in Job Growth, and Have Slightly Softer Growth in Wages

Fiscal Year17 18 19 20 21 22

Real GDP 1.9 2.6 3.0 2.4 1.7 1.5 Consumer Spending 2.6 2.5 2.9 2.6 2.3 2.0CPI 1.9 2.2 2.6 2.4 2.4 2.43-Month T-bill 0.6 1.4 2.4 3.0 3.2 3.2

EmploymentU.S. 1.7 1.5 1.6 1.3 0.7 0.3Virginia 1.0 1.4 1.7 1.1 0.6 0.3

Personal IncomeU.S. 3.4 4.5 4.4 4.9 4.5 4.3Virginia 2.8 4.1 4.1 4.8 4.6 4.5

Wages & SalariesU.S. 3.7 4.8 4.6 4.8 4.6 4.4Virginia 3.3 4.0 4.3 4.2 4.0 3.9

11

GACRE Revenue Forecast Is Higher As Compared to Chapter 2 – Mainly Due to Strength in Fiscal Year 2018

• Total revenue is $408.2 million higher than the Chapter 2 Official forecast over the biennium.

• FY19 revenue growth is now at 2.6 percent as compared to the 1.5 percent growth currently required to attain the Official forecast.

• FY20 revenue growth is now at 3.7 percent as compared to the 4.0 percent growth currently required to attain the Official forecast.

• Current law and policies as reflected in Chapter 2 are assumed throughout. Highlights include:

– AST rollback is continued consistent with enacted budget assumption.– Nonwithholding Collar (15.89%) is applied and limited to 1% of general fund.FY19 – Reduce forecast by $540.0 million then add back $333.0 million to get

net collar reduction of $207.0 millionFY20 – Reduce forecast by $637.0 million then add back $423 million to get net

collar reduction of $214.0 million.– Fiscal year 2019 payroll withholding model adjusted for the $120 million in June

payments. – There were no direct revenue impacts from the TCJA or Wayfair in the GACRE

forecasts.

12

December Revenue Forecast (Introduced Budget) Includes Policy Adjustments

• Improved revenue collections through November would suggest that the GACRE forecast is conservative and in line with the advice of the GACRE members.

• The main post-GACRE revenue adjustment was to increase the payroll withholding forecast by $70 million per year based on collection trends.

– Many GACRE members commented that they believed payroll growth would be stronger given the recent rise in average wages and tight labor market.

• This forecast remains more conservative than the money committees’ forecasts presented at the General Assembly retreats last month.

• Some tax policy changes (federal tax conformity and Wayfair estimates) are proposed by the Governor.

• Virginia currently conforms to the federal tax code as of December 1, 2017. A bill will be introduced to set fixed state conformity as of December 31, 2018.

– The budget introduced today includes fully conforming to the IRS Code.

13

Fiscal Year Cash Flow of Almost $600 Million per Year However, Significant Amount Is Not Permanent and

Comes with Unknowns

Source: Chainbridge Software, LLC

14

Internet Sales (Wayfair)Estimated Revenue Impact by Fund

(millions of dollars)

State Sales and Use Tax (5.3% net of Dealer Discount) 5.280% 144.9$ GF - Unrestricted (1) 2.015% 55.3$ GF - Restricted 1% Education (2) 0.990% 27.2$ Education School Age 1/8% (GF transfer from Restricted) 0.125% 3.4$ Education SOQ 1/4% (GF transfer from Unrestricted) 0.250% 6.9$ Transportation (3) 0.800% 22.0$ HMOF (GF transfer) 0.100% 2.7$ Local Option 1.000% 27.4$

Regional Trans. Funds (0.7%) (4) 0.367% 10.1$ Hampton Roads (TPO) 0.127% 3.5$ Northern Virginia (NVTA) 0.240% 6.6$

Total Sales and Use Tax (4) 5.647% 155.0$

Notes:1) Includes: 2.025% General Fund Unrestricted, -0.01% Dealer Discount.

3) Includes 0.5% TTF, 0.175% HMOF, 0.050% IPROCF, and 0.075% Mass Transit Fund.4) The assumed state, local and regional sales and use blended tax rate is 5.65%, after dealer discount.

2) Includes: 1% Education based on school age population, -0.01% Dealer Discount.

15

Composition of the December Revenue ForecastFiscal Years 2019 and 2020

(millions of dollars)

December General Fund Revenue Forecast

Note: numbers may not add due to rounding.

FY19 FY202019-20 Biennium

GACRE Revenue Forecast $20,400.1 $21,158.0 $41,558.1Total Revenue Growth: GACRE 2.6% 3.7%

Revenue Adjustments Payroll Withholding Forecast 70.0 70.0 140.0

Revenue Policy Adjustments Wayfair internet sales (unrestricted amount) 55.3 55.3 Wayfair internet sales (restricted K-12 amount) 27.2 27.2 Federal tax conformity - permanent 76.9 177.5 254.4 Federal tax conformity - expires after 2025 517.3 433.6 950.9 Refundable Earned Income Tax Credit (10.3) (206.0) (216.3) Accelerated Sales Tax -- increase threshold to $10 million (27.2) (27.2) Miscellaneous minor actions (3.4) 0.6 (2.8)

Total 650.5 531.0 1,181.5

Total General Fund Revenues 21,050.6$ 21,689.0$ 42,739.6$ Total Revenue Growth 5.9% 3.0%

16

Official and December Standard General Fund Forecasts(Dollars in Millions)

Major Sources Actual Official ChangeWithholding $12,540.5 5.4 % $12,870.2 $13,013.9 $143.7 2.6 % 3.8Nonwithholding 3,472.9 15.1 3,368.3 4,001.0 632.7 (3.0) 15.2Refunds (1,907.6) 2.5 (2,054.7) (1,969.7) 85.0 7.7 3.3

Net Individual $14,105.8 8.1 % $14,183.8 $15,045.2 $861.4 0.6 % 6.7 %

Sales $3,461.8 3.1 % $3,547.3 $3,591.1 $43.8 2.5 % 3.7 %Corporate 861.9 4.2 912.0 910.5 (1.5) 5.8 5.6Wills (Recordation) 394.9 0.1 407.2 368.6 (38.6) 3.1 (6.7)Insurance 337.9 (0.9) 376.6 395.3 18.7 11.4 17.0All Other Revenue $ 718.5 (0.6) 746.8 739.9 (6.9) 3.9 3.0

Total Revenue $19,880.8 6.3 % $20,173.7 $21,050.6 $876.9 1.5 % 5.9 %

A.B.C. Profits $ $109.5 (0.9) % $109.8 $112.9 $3.1 0.3 % 3.1 %Sales Tax (0.375%) 376.6 2.9 386.7 390.0 3.3 2.7 3.6Transfers 142.2 (19.6) 124.5 119.2 (5.3) (12.4) (16.2)

Total Transfers $ $628.3 (3.8) % $621.0 $622.1 $1.1 (1.2) % (1.0) %

TOTAL GENERAL FUND $ $20,509.0 6.0 % $20,794.7 $21,672.7 $878.0 1.4 % 5.7 %

Fiscal Year 2018 Fiscal Year 2019

12/18/2018

% Growth Over FY 18% Growth December Official December

17

Official and December Standard General Fund Forecasts(Dollars in Millions)

Official December Change Official December ChangeWithholding $13,368.5 $13,539.7 $171.2 3.9 % 4.0 % $26,238.7 $26,553.6 $314.9Nonwithholding 3,635.0 4,118.1 483.1 7.9 2.9 7,003.3 8,119.1 1,115.8Refunds (2,147.3) (2,277.3) (130.0) 4.5 15.6 (4,202.0) (4,247.0) (45.0)

Net Individual $14,856.2 $15,380.5 $524.3 4.7 2.2 $29,040.0 $30,425.7 $1,385.7

Sales $3,625.2 $3,731.1 $105.9 2.2 3.9 $7,172.5 $7,322.2 $149.7Corporate 926.4 1,043.5 117.1 1.6 14.6 1,838.4 1,954.0 115.6Wills (Recordation) 407.2 368.6 (38.6) 0.0 0.0 814.4 737.2 (77.2)Insurance 397.6 410.3 12.7 5.6 3.8 774.2 805.6 31.4All Other Revenue 763.6 755.0 (8.6) 2.2 2.0 1,510.4 1,494.9 (15.5)

Total Revenue $20,976.2 $21,689.0 $712.8 4.0 % 3.0 % $41,149.9 $42,739.6 $1,589.7

A.B.C. Profits $115.5 $117.2 $1.7 5.2 % 3.8 % $225.3 $230.1 $4.8Sales Tax (0.375%) 395.2 409.3 14.1 2.2 4.9 781.9 799.3 17.4Transfers Per Act 120.3 103.8 (16.5) (3.4) (12.9) 244.8 223.0 (21.8)

Total Transfers $631.0 $630.3 ($0.7) 1.6 % 1.3 % $1,252.0 $1,252.4 $0.4

TOTAL GENERAL FUND $21,607.2 $22,319.3 $712.1 3.9 % 3.0 % $42,401.9 $43,992.0 $1,590.1

Fiscal Year 2020 2018-2020 Biennium

December 18, 2018

% Growth Over FY19Official December

18

Fiscal Year 2019 Year-to-Date Revenue Collections Through November

November Year-to-Date Collections and FY19 December Forecast

As a %of Total YTD Annual Dec-Jun Req'd Prior Year

Major Source Revenues Actual Estimate Variance to Meet Est. Dec-JunWithholding 61.8 % 3.0 % 3.8 % (0.8) % 4.3 % 6.3 %Nonwithholding 19.0 12.2 15.2 (3.0) 15.9 18.8Refunds (9.4) 6.1 3.3 2.8 2.8 2.0 Net Individual 71.5 3.9 6.7 (2.8) 8.3 11.0

Sales 17.1 4.1 3.7 0.4 3.5 2.3Corporate 4.3 (14.2) 5.6 (19.8) 14.8 (9.9)Wills (Recordation) 1.8 (6.0) (6.7) 0.7 (7.2) 2.1Insurance 1.9 na 17.0 na 17.0 (0.9)All Other Revenue 3.5 13.2 3.0 10.2 (2.1) (1.9)

Total 100.0 % 3.4 % 5.9 % (2.5) % 7.3 % 7.2 %

Percent Growth over Prior Year

19

By the Close of FY 2020, Total Reserves Are Estimated to Exceed $1.5 Billion, the Largest Total in History

$80.1$85.0

$156.6

$224.3

$361.5

$574.6

$715.6

$472.4

$247.5

$340.1

$482.3

$1,064.7

$1,189.8

$1,014.9

$575.1

$295.2$299.4$303.6

$440.0

$687.5

$467.7

$235.5

$548.8

$439.7

$1,228.9

$1,549.6

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

Total of All Reserves

Revenue Stabilization Fund Revenue Reserve Fund

20

FY2019-FY2020 Revenues(millions of dollars)

Ongoing Versus One-Time General Fund Revenues

Note: numbers may not add due to rounding.

Revenue Source Ongoing One-Time Total Ongoing One-Time Total Ongoing One-Time TotalChapter 2 20,173.7$ 20,173.7$ 20,976.2$ 20,976.2$ 41,149.9$ 41,149.9$ GACRE November Standard 226.4$ 226.4$ 181.8$ 181.8$ 408.2$ 408.2$ Post-GACRE revenue adjustments 70.0$ 70.0$ 70.0$ 70.0$ 140.0$ 140.0$ Federal Tax Conformity 76.9$ 517.3$ 594.2$ 177.5$ 433.6$ 611.1$ 254.4$ 950.9$ 1,205.3$ Wayfair internet sales tax 82.5$ 82.5$ 82.5$ 82.5$ Refundable EITC (10.3)$ (10.3)$ (206.0)$ (206.0)$ (216.3)$ (216.3)$ Accelerated Sales Tax - $10m (27.2)$ (27.2)$ (27.2)$ (27.2)$ Miscellaneous (3.4)$ (3.4)$ 0.6$ 0.6$ 0.6$ (3.4)$ (2.8)$ Total Revenues 20,547.0$ 503.6$ 21,050.6$ 21,488.6$ 200.4$ 21,689.0$ 42,035.6$ 704.0$ 42,739.6$

FY19 FY20 Biennium Total

21

Next Steps in the Revenue Forecasting Process

• The mid-session review will incorporate the latest economic and revenue data.

– IHS Markit January U.S. economic outlook:

Impact of any federal budget agreements

Holiday retail sales

– Key additional revenue data will be available:

December 17 – due date for the fourth quarter corporate estimated income tax payment

January 15 – due date for the fourth quarter individual estimated income tax payment

January 22 – due date for retail sales tax collections, reflecting the main holiday shopping season

• Federal tax conformity needs to be passed as soon as possible.

22

APPENDIX

This presentation and the appendix data listed below are available at the Secretary of Finance website (www.finance.virginia.gov).

• U.S. Economic Indicators

• Virginia Economic Indicators

• General Fund Forecast, FY 2019-2026

• Commonwealth Transportation Fund Forecast, FY 2019-2024

• Virginia Health Care Fund Forecast, FY 2019-2026

• GACRE November Standard Revenue Forecast

• GACRE November Pessimistic Revenue Forecast

• Growth in General Fund Revenues, FY 1961-2020

• Nongeneral Fund Forecast, FY 2018-2024

• November 2018 Revenue Report

FY17 FY18 FY19 FY20 FY21 FY22Output, Income, and Spending (% of Total)

Real GDP Official (Oct '17) 1.9 2.4 2.3 2.2 2.2 2.1Oct Standard 1.9 2.6 3.0 2.4 1.7 1.5Oct Pessimistic 3.1 0.8 0.0 1.7

Total Personal Income Official (Oct '17) 2.5 3.5 4.5 5.0 4.9 4.7Oct Standard 3.4 4.5 4.4 4.9 4.5 4.3Oct Pessimistic 4.2 3.3 2.5 4.3

Wages and Salaries (50%) Official (Oct '17) 2.8 4.1 4.9 4.9 4.8 4.8Oct Standard 3.7 4.8 4.6 4.8 4.6 4.4Oct Pessimistic 4.4 3.3 3.1 4.7

Average Wage Official (Oct '17) 1.1 2.7 3.7 3.8 4.0 4.0Oct Standard 1.9 3.2 3.0 3.5 3.9 4.1Oct Pessimistic 2.8 3.1 3.7 4.3

Real Consumer Spending Official (Oct '17) 2.8 2.5 2.4 2.4 2.4 2.3Oct Standard 2.6 2.5 2.9 2.6 2.3 2.0Oct Pessimistic 2.7 1.4 0.6 1.5

Interest Rates (%)3-Month Treasury Bills Official (Oct '17) 0.6 1.3 2.1 2.8 2.9 2.9

Oct Standard 0.6 1.4 2.4 3.0 3.2 3.2Oct Pessimistic 2.3 1.1 0.3 1.0

30-Year Treasury Bonds Official (Oct '17) 2.8 3.3 4.0 4.6 4.6 4.6Oct Standard 2.8 2.9 3.3 3.7 3.8 3.8Oct Pessimistic 3.0 2.1 2.4 3.1

Prices (% of Total)CPI Official (Oct '17) 1.9 1.8 2.0 2.5 2.6 2.4

Oct Standard 1.9 2.2 2.6 2.4 2.4 2.4Oct Pessimistic 2.5 2.2 2.4 2.7

GDP Deflator Official (Oct '17) 1.6 1.7 2.3 2.1 2.2 2.1Oct Standard 1.6 2.1 2.4 2.5 2.5 2.5Oct Pessimistic 2.3 2.2 2.6 3.0

The Oct Standard forecast is IHS Markit's October 2018 U.S. standard forecast.The Oct Pessimistic forecast is IHS Markit's October 2018 U.S. pessimistic alternative scenario.

Fiscal Years 2017-2022 Official and October ForecastsU.S. Economic Forecasts - Income and Other Indicators (% Change)

The Official forecast is IHS Markit's October 2017 U.S. standard scenario.

FY17 FY18 FY19 FY20 FY21 FY22Employment and Labor Markets (% of Total)

Total Nonagricultural Employment Official (Oct '17) 1.6 1.4 1.2 1.0 0.8 0.8Oct Standard 1.7 1.5 1.6 1.3 0.7 0.3Oct Pessimistic 1.5 0.2 (0.5) 0.3

Construction (5%) Official (Oct '17) 3.0 2.2 2.2 3.5 2.5 2.8Oct Standard 3.6 3.5 3.6 3.4 3.8 2.6Oct Pessimistic 4.1 2.1 (2.3) 1.5

Manufacturing (9%) Official (Oct '17) 0.1 1.3 2.2 1.2 0.6 0.4Oct Standard 0.2 1.5 1.8 0.2 (0.7) (0.9)Oct Pessimistic 1.1 (0.5) (2.4) (0.4)

Trade, Transportation, and Utilities (19%) Official (Oct '17) 1.0 0.5 0.2 (0.1) (0.2) (0.1)Oct Standard 1.2 0.8 1.0 0.2 (0.6) (0.7)Oct Pessimistic 0.8 (1.2) (1.5) (0.9)

Financial Activities (6%) Official (Oct '17) 2.1 1.8 1.2 0.3 0.5 0.5Oct Standard 2.1 1.7 1.2 1.8 0.6 (0.2)Oct Pessimistic 1.6 1.2 (0.3) (0.5)

Professional and Business Services (14%) Official (Oct '17) 2.9 3.1 3.9 3.3 2.3 2.0Oct Standard 2.0 2.4 3.2 5.0 2.3 1.1Oct Pessimistic 2.4 0.7 (1.0) 4.0

Education and Health Services (16%) Official (Oct '17) 2.5 2.0 1.1 0.8 0.8 0.9Oct Standard 2.7 2.1 2.0 0.8 0.2 0.5Oct Pessimistic 2.2 0.5 0.9 (0.1)

Leisure and Hospitality (11%) Official (Oct '17) 2.3 1.5 0.2 (0.0) 0.8 0.7Oct Standard 2.9 2.1 1.4 0.2 2.0 0.8Oct Pessimistic 1.5 0.4 1.7 0.0

Government (15%) Official (Oct '17) 0.9 0.2 0.4 0.8 0.2 0.5Oct Standard 0.9 0.1 0.1 0.9 0.4 0.6Oct Pessimistic 0.1 0.9 (0.6) 0.0

Unemployment Rate (%) Official (Oct '17) 4.7 4.3 4.3 4.3 4.3 4.4Oct Standard 4.7 4.1 3.7 3.5 3.7 4.0Oct Pessimistic 3.8 4.6 5.6 5.7

The Oct Standard forecast is IHS Markit's October 2018 U.S. standard forecast.The Oct Pessimistic forecast is IHS Markit's October 2018 U.S. pessimistic alternative scenario.

Fiscal Years 2017-2022 Official and October ForecastsU.S. Economic Forecasts - Employment and Labor Markets (% Change)

The Official forecast is IHS Markit's October 2017 U.S. standard scenario.

FY17 FY18 FY19 FY20 FY21 FY22Employment and Labor Markets (% of Total)

Total Nonagricultural Employment Official (Oct '17) 1.2 1.3 1.0 0.8 0.7 0.7Oct Standard 1.0 1.4 1.7 1.1 0.6 0.3Oct Pessimistic 1.6 (0.0) (0.6) 0.4

Construction and Mining (5%) Official (Oct '17) 1.5 1.9 3.5 4.4 2.6 2.6Oct Standard 1.5 3.3 2.2 3.9 4.5 3.2Oct Pessimistic 2.8 2.5 (2.3) 2.0

Manufacturing (6%) Official (Oct '17) (0.5) (0.7) 1.3 1.3 0.8 0.3Oct Standard (0.1) 1.3 1.8 0.3 (0.9) (1.3)Oct Pessimistic 0.9 (0.6) (2.9) (0.7)

Trade, Transportation, and Utilities (17%) Official (Oct '17) 0.2 0.3 0.1 (0.1) (0.2) (0.4)Oct Standard 0.3 0.5 1.9 0.1 (0.8) (0.8)Oct Pessimistic 1.6 (1.9) (1.9) (0.8)

Financial Activities (5%) Official (Oct '17) 2.1 1.7 1.1 0.3 0.5 0.5Oct Standard 1.9 2.5 1.7 1.9 0.8 0.1Oct Pessimistic 2.3 1.1 (0.3) (0.2)

Professional and Business Services (19%) Official (Oct '17) 2.6 2.6 2.8 2.0 1.4 1.6Oct Standard 1.6 2.3 2.6 3.7 1.8 1.3Oct Pessimistic 1.9 0.3 (0.9) 3.4

Education and Health Services (14%) Official (Oct '17) 1.4 2.0 0.8 0.5 0.9 1.1Oct Standard 1.3 1.9 2.4 0.8 0.4 0.9Oct Pessimistic 2.6 0.5 1.1 0.2

Leisure and Hospitality (10%) Official (Oct '17) 2.1 1.8 0.8 0.2 0.8 0.5Oct Standard 1.9 1.8 2.1 0.2 1.7 0.8Oct Pessimistic 2.1 0.4 1.4 0.1

Government (18%) Official (Oct '17) 0.3 0.4 (0.0) 0.2 0.3 0.3Oct Standard 0.5 (0.1) (0.1) 0.4 (0.1) (0.3)Oct Pessimistic (0.1) 0.3 (0.2) (0.2)

Unemployment Rate (%) Official (Oct '17) 4.0 3.6 3.5 3.5 3.5 3.6Oct Standard 4.0 3.5 3.0 2.9 3.0 3.2Oct Pessimistic 3.1 3.6 4.2 4.2

The Oct Standard forecast is based on IHS Markit's October 2018 U.S. standard forecast.The Oct Pessimistic forecast is based on IHS Markit's October 2018 U.S. pessimistic alternative scenario.

Fiscal Years 2017-2022 Official and October ForecastsVirginia Economic Forecasts - Employment and Labor Markets (% Change)

The Official forecast is based on IHS Markit's October 2017 U.S. standard forecast with recommendations by JABE and GACRE.

FY17 FY18 FY19 FY20 FY21 FY22Income (% of Total)

Total Personal Income Official (Oct '17) 2.4 3.3 4.3 4.6 4.5 4.1Oct Standard 2.8 4.1 4.1 4.8 4.6 4.5Oct Pessimistic 4.0 3.5 2.8 4.3

Wages and Salaries (52%) Official (Oct '17) 2.7 3.6 4.4 4.0 4.0 4.0Oct Standard 3.3 4.0 4.3 4.2 4.0 3.9Oct Pessimistic 4.1 2.9 3.0 3.9

Average Wage Official (Oct '17) 1.5 2.2 3.4 3.1 3.2 3.3Oct Standard 2.3 2.5 2.5 3.0 3.4 3.6Oct Pessimistic 2.5 3.0 3.6 3.5

Dividends, Interest, and Rent (20%) Official (Oct '17) 2.2 3.2 5.3 7.2 6.1 4.6Oct Standard 3.1 4.4 3.8 6.8 5.8 5.4Oct Pessimistic 3.6 3.4 (0.9) 4.3

Supplements to Wages and Salaries (12%) Official (Oct '17) (0.1) 1.9 3.0 3.6 3.4 3.0Oct Standard 0.6 3.9 3.1 4.6 4.8 4.7Oct Pessimistic 2.9 4.4 4.3 4.3

Proprietor's Income (6%) Official (Oct '17) 2.6 2.9 (0.2) (3.7) 0.0 (0.5)Oct Standard (0.9) 4.6 2.5 (2.5) (4.0) (3.3)Oct Pessimistic 1.9 (3.3) (2.9) (2.3)

Net Transfer Payments (6%) Official (Oct '17) 3.8 3.9 6.7 10.0 8.9 8.3Oct Standard 4.6 5.3 4.3 9.8 12.0 11.1Oct Pessimistic 5.3 12.3 13.0 10.7

The Oct Standard forecast is based on IHS Markit's October 2018 U.S. standard forecast.The Oct Pessimistic forecast is based on IHS Markit's October 2018 U.S. pessimistic alternative scenario.

Fiscal Years 2017-2022 Official and October ForecastsVirginia Economic Forecasts - Income (% Change)

The Official forecast is based on IHS Markit's October 2017 U.S. standard forecast with recommendations by JABE and GACRE.

(Dollars in Millions) December 18, 2018

MAJOR TAX SOURCES

Corporate Income $ 912.0 $ 910.5 $ (1.5) 5.8 % 5.6 %Individual Income Tax:

Gross 16,238.5 17,014.9 776.4 1.4 6.3Withholding 12,870.2 13,013.9 143.7 2.6 3.8Nonwithholding 3,368.3 4,001.0 632.7 (3.0) 15.2

Refunds (2,054.7) (1,969.7) 85.0 7.7 3.3Net 14,183.8 15,045.2 861.4 0.6 6.7

Insurance Company Premiums 376.6 395.3 18.7 11.4 17.0State Sales & Use Tax 3,547.3 3,591.1 43.8 2.5 3.7Wills, Suits, Deeds, & Contract Fees 407.2 368.6 (38.6) 3.1 (6.7)

Total Major Tax Sources $ 19,426.9 $ 20,310.7 $ 883.8 1.4 % 6.0 %

MISCELLANEOUS TAXES AND OTHER REVENUES

Alcoholic Beverage State Tax $ 197.5 $ 199.1 $ 1.6 3.4 % 4.3 %Bank Franchise Tax 22.0 24.0 2.0 (8.2) 0.2Beer & Beverage Excise Tax 42.3 40.9 (1.4) 3.5 0.1Corporate Franchise & Charter Fees 51.2 53.7 2.5 (4.5) 0.1

Excess & Other Fees from Officers (7.9) (7.6) 0.3 3.2 (0.8)Estate & Gifts 0.0 0.0 0.0 n/a n/aInstitutional Revenues 2.1 2.6 0.5 (23.9) (5.7)Interest & Rents 66.5 68.8 2.3 7.7 % 11.4

Licenses & Permits 4.2 4.1 (0.1) 4.8 % 2.3Miscellaneous Taxes and Penalties 234.9 232.0 (2.9) 2.5 % 1.2Other Miscellaneous Revenues 36.0 23.6 (12.4) 85.1 % 21.4Public Service GR / Consumption Tax 98.0 98.7 0.7 (0.7) % 0.0

Total Misc. Taxes and Other Revenues $ 746.8 $ 739.9 $ (6.9) 3.9 % 3.0 %

TOTAL GF REVENUES $ 20,173.7 $ 21,050.6 $ 876.9 1.5 % 5.9 %

TRANSFERS

A.B.C. Profits $ 109.8 $ 112.9 $ 3.1 0.3 % 3.1 %Sales Tax (0.375%) 386.7 390.0 3.3 2.7 3.6Transfers Per Appropriations Act 124.5 119.2 (5.3) (12.4) (16.2)

Total Transfers $ 621.0 $ 622.1 $ 1.1 (1.2) % (1.0) %

TOTAL GENERAL FUND $ 20,794.7 $ 21,672.7 $ 878.0 1.4 % 5.7 %

The Official and December General Fund Forecast for Fiscal Year 2019

Fiscal Year 2019December

The Official forecast is based on the October 2017 IHS Markit Standard Outlook and the corresponding Virginia state forecast developed by the Department of Taxation with recommendations from GACRE. It includes actions of the 2018 General Assembly Session. Chapter 2.The December forecast is based on the October 2018 IHS Markit Standard Outlook and the corresponding Virginia state forecast developed by the Department of Taxation with recommendations from JABE and GACRE and Governor's proposed tax policies affecting revenues.

OfficalForecast Forecast Change Offical December

% Growth Over FY 18

(Dollars in Millions)

MAJOR TAX SOURCES

Corporate Income $ 926.4 $ 1,043.5 $ 117.1 1.6 % 14.6 % $ 1,838.4 $ 1,954.0 $ 115.6Individual Income Tax:

Gross 17,003.5 17,657.8 654.3 4.7 3.8 33,242.0 34,672.7 1,430.7Withholding 13,368.5 13,539.7 171.2 3.9 4.0 26,238.7 26,553.6 314.9Nonwithholding 3,635.0 4,118.1 483.1 7.9 2.9 7,003.3 8,119.1 1,115.8

Refunds (2,147.3) (2,277.3) (130.0) 4.5 15.6 (4,202.0) (4,247.0) (45.0)Net 14,856.2 15,380.5 524.3 4.7 2.2 29,040.0 30,425.7 1,385.7

Insurance Company Premiums 397.6 410.3 12.7 5.6 3.8 774.2 805.6 31.4State Sales & Use Tax 3,625.2 3,731.1 105.9 2.2 3.9 7,172.5 7,322.2 149.7Wills, Suits, Deeds, & Contract Fees 407.2 368.6 (38.6) 0.0 0.0 814.4 737.2 (77.2)

Total Major Tax Sources $ 20,212.6 $ 20,934.0 $ 721.4 4.0 % 3.1 % $ 39,639.5 $ 41,244.7 $ 1,605.2


Alcoholic Beverage State Tax $ 205.9 $ 207.5 $ 1.6 4.3 % 4.2 % $ 403.4 $ 406.6 $ 3.2Bank Franchise Tax 22.0 24.0 2.0 0.0 0.0 44.0 48.0 4.0Beer & Beverage Excise Tax 42.3 40.9 (1.4) 0.0 0.0 84.6 81.8 (2.8)Corporate Franchise & Charter Fees 51.2 53.7 2.5 0.0 0.0 102.4 107.4 5.0

Excess & Other Fees from Officers (7.9) (7.6) 0.3 0.0 0.0 (15.8) (15.2) 0.6Estate & Gifts 0.0 0.0 0.0 n/a n/a 0.0 0.0 n/aInstitutional Revenues 2.1 2.6 0.5 0.0 0.0 4.2 5.2 1.0Interest & Rents 73.0 74.8 1.8 9.8 8.7 139.5 143.6 4.1

Licenses & Permits 4.2 4.1 (0.1) 0.0 0.0 8.4 8.2 (0.2)Miscellaneous Taxes and Penalties 240.3 232.7 (7.6) 2.3 0.3 475.2 464.7 (10.5)Other Miscellaneous Revenues 32.5 23.6 (8.9) (9.7) 0.0 68.5 47.2 (21.3)Public Service GR / Consumption Tax 98.0 98.7 0.7 0.0 0.0 196.0 197.4 1.4

Total Misc. Taxes and Other Revenues $ 763.6 $ 755.0 $ (8.6) 2.2 % 2.0 % $ 1,510.4 $ 1,494.9 $ (15.5)

TOTAL GF REVENUES $ 20,976.2 $ 21,689.0 $ 712.8 4.0 % 3.0 % $ 41,149.9 $ 42,739.6 $ 1,589.7

TRANSFERS

A.B.C. Profits $ 115.5 $ 117.2 $ 1.7 5.2 % 3.8 % $ 225.3 $ 230.1 $ 4.8Sales Tax (0.375%) 395.2 409.3 14.1 2.2 4.9 781.9 799.3 17.4Transfers Per Appropriations Act 120.3 103.8 (16.5) (3.4) (12.9) 244.8 223.0 (21.8)

Total Transfers $ 631.0 $ 630.3 $ (0.7) 1.6 % 1.3 % $ 1,252.0 $ 1,252.4 $ 0.4

TOTAL GENERAL FUND $ 21,607.2 $ 22,319.3 $ 712.1 3.9 % 3.0 % $ 42,401.9 $ 43,992.0 $ 1,590.1

2018-2020 BienniumOfficial

The Official forecast is based on the October 2017 IHS Markit Standard Outlook and the corresponding Virginia state forecast developed by the Department of Taxation with recommendations from GACRE. It includes actions of the 2018 General Assembly Session. Chapter 2.The December forecast is based on the October 2018 IHS Markit Standard Outlook and the corresponding Virginia state forecast developed by the Department of Taxation with recommendations from JABE and GACRE and Governor's proposed tax policies affecting revenues.

ChangeDecemberOfficial December

Fiscal Year 2020

The Official and December General Fund Forecast for Fiscal Year 2020December 18, 2018

% Growth Over FY 19 DecemberOfficial Forecast ForecastForecast Forecast Change


MAJOR TAX SOURCES

Corporate Income $ 1,085.0 4.0 % $ 1,226.4 13.0 % $ 2,311.4 18.3 %Individual Income Tax:

Gross 18,328.8 3.8 19,084.5 4.1 37,413.3 7.9Withholding 14,039.8 3.7 14,607.4 4.0 28,647.2 7.9Nonwithholding 4,289.0 4.1 4,477.1 4.4 8,766.1 8.0

Refunds (2,402.4) 5.5 (2,495.9) 3.9 (4,898.3) 15.3Net 15,926.4 3.5 16,588.6 4.2 32,515.0 6.9

Insurance Company Premiums 412.9 0.6 435.9 5.6 848.8 5.4State Sales & Use Tax 3,844.2 3.0 3,933.4 2.3 7,777.6 6.2Wills, Suits, Deeds, & Contract Fees 368.6 0.0 368.6 0.0 737.2 0.0

Total Major Tax Sources $ 21,637.1 3.4 % $ 22,552.9 4.2 % $ 44,190.0 7.1 %


Alcoholic Beverage State Tax $ 215.7 4.0 % $ 224.1 3.9 % $ 439.8 8.2 %Bank Franchise Tax 24.0 0.0 24.0 0.0 48.0 0.0Beer & Beverage Excise Tax 40.9 0.0 40.9 0.0 81.8 0.0Corporate Franchise & Charter Fees 53.7 0.0 53.7 0.0 107.4 0.0

Excess & Other Fees from Officers (7.6) 0.0 (7.6) 0.0 (15.2) 0.0Estate & Gifts 0.0 n/a 0.0 n/a 0.0 n/aInstitutional Revenues 2.6 0.0 2.6 0.0 5.2 0.0Interest & Rents 74.8 0.0 74.8 0.0 149.6 4.2

Licenses & Permits 4.1 0.0 4.1 0.0 8.2 0.0Miscellaneous Taxes and Penalties 233.1 0.2 233.1 0.0 466.2 0.3Other Miscellaneous Revenues 23.6 0.0 23.6 0.0 47.2 0.0Public Service GR / Consumption Tax 98.7 0.0 98.7 0.0 197.4 0.0

Total Misc. Taxes and Other Revenues $ 763.6 1.1 % $ 772.0 1.1 % $ 1,535.6 2.7 %

TOTAL GF REVENUES $ 22,400.7 3.3 % $ 23,324.9 4.1 % $ 45,725.6 7.0 %

TRANSFERS

A.B.C. Profits $ 118.4 1.0 % $ 122.2 3.2 % $ 240.6 4.6 %Sales Tax (0.375%) 408.3 (0.2) 418.0 2.4 826.3 3.4Transfers Per Appropriations Act 115.0 10.8 115.0 0.0 230.0 3.1

Total Transfers $ 641.7 1.8 % $ 655.2 2.1 % $ 1,296.9 3.6 %

TOTAL GENERAL FUND $ 23,042.4 3.2 % $ 23,980.1 4.1 % $ 47,022.5 6.9 %

December 18, 2018

Fiscal Year 2021 Fiscal Year 2022 2020-2022 Biennium

The December General Fund Forecast for Fiscal Years 2020-22

December % Growth Over 18-20Forecast Forecast Forecast

December % Growth Over FY 20

December % Growth Over FY 21

The December forecast is based on the October 2018 IHS Markit Standard Outlook and the corresponding Virginia state forecast developed by the Department of Taxation with recommendations from JABE and GACRE and Governor's proposed tax policies affecting revenues.The Official forecast is based on the October 2017 IHS Markit Standard Outlook and the corresponding Virginia state forecast developed by the Department of Taxation with recommendations from GACRE. It includes actions of the 2018 General Assembly Session. Chapter 2.


MAJOR TAX SOURCES

Corporate Income $ 1,379.4 $ 1,401.9 $ 1,407.5 $ 1,449.9Individual Income Tax:

Gross 19,880.7 20,679.9 21,548.7 22,166.5Withholding 15,181.0 15,764.7 16,353.9 16,952.8Nonwithholding 4,699.7 4,915.2 5,194.8 5,213.7

Refunds (2,595.7) (2,693.9) (2,853.7) (2,929.6)Net 17,285.0 17,986.0 18,695.0 19,236.9

Insurance Company Premiums 453.6 472.7 491.1 510.9State Sales & Use Tax 4,023.6 4,112.8 4,203.9 4,299.1Wills, Suits, Deeds, & Contract Fees 368.6 368.6 368.6 368.6

Total Major Tax Sources $ 23,510.2 $ 24,342.0 $ 25,166.1 $ 25,865.4


Alcoholic Beverage State Tax $ 224.1 $ 224.1 $ 224.1 $ 224.1Bank Franchise Tax 24.0 24.0 24.0 24.0Beer & Beverage Excise Tax 40.9 40.9 40.9 40.9Corporate Franchise & Charter Fees 53.7 53.7 53.7 53.7

Excess & Other Fees from Officers (7.6) (7.6) (7.6) (7.6)Estate & Gifts 0.0 0.0 0.0 0.0Institutional Revenues 2.6 2.6 2.6 2.6Interest & Rents 74.8 74.8 74.8 74.8

Licenses & Permits 4.1 4.1 4.1 4.1Miscellaneous Taxes and Penalties 233.1 233.1 233.1 233.1Other Miscellaneous Revenues 23.6 23.6 23.6 23.6Public Service GR / Consumption Tax 98.7 98.7 98.7 98.7

Total Misc. Taxes and Other Revenues $ 772.0 $ 772.0 $ 772.0 $ 772.0

TOTAL GF REVENUES $ 24,282.2 $ 25,114.0 $ 25,938.1 $ 26,637.4

TRANSFERS

A.B.C. Profits $ 122.2 $ 122.2 $ 122.2 $ 122.2Sales Tax (0.375%) 427.8 437.5 447.4 457.5Transfers Per Appropriations Act 115.0 115.0 115.0 115.0

Total Transfers $ 665.0 $ 674.7 $ 684.6 $ 694.7

TOTAL GENERAL FUND $ 24,947.2 $ 25,788.7 $ 26,622.7 $ 27,332.1

$ Change From Previous Year $ 967.1 $ 841.5 $ 834.0 $ 709.3

TOTAL BIENNIUM GENERAL FUND $ 50,735.9 $ 53,954.8

$ Change From Previous Biennium $ 3,713.4 $ 3,218.9% Growth From Previous Biennium 7.9 6.3 %

2023 2024 2025 2026Fiscal Year Fiscal Year

The December General Fund Forecast for Fiscal Years 2023-26December 18, 2018

Fiscal Year Fiscal Year


MAJOR TAX SOURCES

Corporate Income 12.5 % 1.6 % 0.4 % 3.0 %Individual Income Tax:

Gross 4.2 4.0 4.2 2.9Withholding 3.9 3.8 3.7 3.7Nonwithholding 5.0 4.6 5.7 0.4

Refunds 4.0 3.8 5.9 2.7Net 4.2 4.1 3.9 2.9

Insurance Company Premiums 4.1 4.2 3.9 4.0State Sales & Use Tax 2.3 2.2 2.2 2.3Wills, Suits, Deeds, & Contract Fees 0.0 0.0 0.0 0.0

Total Major Tax Sources 4.2 % 3.5 % 3.4 % 2.8 %


Alcoholic Beverage State Tax 0.0 % 0.0 % 0.0 % 0.0 %Bank Franchise Tax 0.0 0.0 0.0 0.0Beer & Beverage Excise Tax 0.0 0.0 0.0 0.0Corporate Franchise & Charter Fees 0.0 0.0 0.0 0.0

Excess & Other Fees from Officers 0.0 0.0 0.0 0.0Estate & GiftsInstitutional Revenues 0.0 0.0 0.0 0.0Interest & Rents 0.0 0.0 0.0 0.0


Total Misc. Taxes and Other Revenues 0.0 % 0.0 % 0.0 % 0.0 %

TOTAL GF REVENUES 4.1 % 3.4 % 3.3 % 2.7 %

TRANSFERS

A.B.C. Profits 0.0 % 0.0 % 0.0 % 0.0 %Sales Tax (0.375%) 2.3 2.3 2.3 2.3Transfers Per Appropriations Act 0.0 0.0 0.0 0.0

Total Transfers 1.5 % 1.5 % 1.5 % 1.5 %

TOTAL GENERAL FUND 4.0 % 3.4 % 3.2 % 2.7 %

% Growth % GrowthOver FY 22 Over FY 23 Over FY 24 Over FY 25% Growth % Growth

FY 25 FY 26

The December General Fund Forecast for Fiscal Years 2023-26December 18, 2018

FY 23 FY 24

The Official and December Commonwealth Transportation Fund Update for Fiscal Year 2019(Dollars in Millions)

December 18, 2018

Fiscal Year 2018 Fiscal Year 2019Official December % Growth over FY 18

Actual % Growth Forecast Forecast Change Official December

Highway Maintenance & Operating Fund

Motor Fuels Tax $ 683.4 (1.7) % $ 724.4 $ 720.4 $ (4.0) 6.0 % 5.4 %Road Tax 3.6 (14.3) 1.7 3.5 1.8 (52.8) (2.8)Motor Vehicle Sales And Use Tax 711.0 (1.5) 715.7 688.3 (27.4) 0.7 (3.2)Motor Vehicle License Fees 237.2 (0.3) 236.7 236.6 (0.1) (0.2) (0.3)Retail Sales and Use Tax 292.5 5.6 292.7 300.9 8.2 0.1 2.9International Registration Plan 69.2 4.5 64.2 67.6 3.4 (7.2) (2.3)Miscellaneous 19.6 6.5 17.2 17.9 0.7 (12.2) (8.7)Total State Taxes and Fees $ 2,016.5 (0.2) % $ 2,052.6 $ 2,035.2 $ (17.4) 1.8 % 0.9 %

Transportation Trust Fund

Motor Fuels Tax $ 160.1 (1.7) % $ 172.1 $ 171.1 $ (1.0) 7.5 % 6.9 %Insurance Premiums Tax (1/3) 168.0 3.0 176.7 168.7 (8.0) 5.2 0.4Road Tax 8.0 (1.2) 8.6 8.6 0.0 7.5 7.5Motor Vehicle Sales And Use Tax 232.7 (1.4) 236.9 227.8 (9.1) 1.8 (2.1)Motor Vehicle License Fees 21.6 (2.7) 22.5 22.0 (0.5) 4.2 1.9Retail Sales and Use Tax 751.3 1.1 775.1 772.7 (2.4) 3.2 2.8Recordation Tax 47.8 (0.6) 48.3 43.6 (4.7) 1.0 (8.8)Interest Earnings 8.9 39.1 4.2 3.8 (0.4) (52.8) (57.3)Rental Tax 40.2 1.8 42.4 42.1 (0.3) 5.5 4.7Aviation Fuels Tax 2.0 0.0 1.9 1.9 0.0 (5.0) (5.0)Total State Taxes and Fees $ 1,440.6 0.6 % $ 1,488.7 $ 1,462.3 $ (26.4) 3.3 % 1.5 %

Total HMOF And TTF

Motor Fuels Tax $ 843.5 (1.7) % $ 896.5 $ 891.5 $ (5.0) 6.3 % 5.7 %Insurance Premiums Tax (1/3) 168.0 3.0 176.7 168.7 (8.0) 5.2 0.4Road Tax 11.6 (5.7) 10.3 12.1 1.8 (11.2) 4.3Motor Vehicle Sales and Use Tax 943.7 (1.5) 952.6 916.1 (36.5) 0.9 (2.9)Motor Vehicle License Fees 258.8 (0.5) 259.2 258.6 (0.6) 0.2 (0.1)International Registration Plan 69.2 4.5 64.2 67.6 3.4 (7.2) (2.3)Retail Sales and Use Tax 1,043.8 2.3 1,067.8 1,073.6 5.8 2.3 2.9Recordation Tax (3 cents) 47.8 (0.6) 48.3 43.6 (4.7) 1.0 (8.8)Interest Earnings 8.9 39.1 4.2 3.8 (0.4) (52.8) (57.3)Rental Tax 40.2 1.8 42.4 42.1 (0.3) 5.5 4.7Aviation Fuels Tax 2.0 0.0 1.9 1.9 0.0 (5.0) (5.0)Miscellaneous 19.6 6.5 17.2 17.9 0.7 (12.2) (8.7)

Total State Taxes and Fees $ 3,457.1 0.1 % $ 3,541.3 $ 3,497.5 $ (43.8) 2.4 % 1.2 %

Transfers per the Appropriations ActRetail Sales Tax - AST (TTF) 0.0 n/a 0.0 0.0 0.0 n/a n/aTotal Transfers $ 0.0 n/a $ 0.0 $ 0.0 $ 0.0 n/a n/a %

Total Transportation Fund $ 3,457.1 0.1 $ 3,541.3 $ 3,497.5 $ (43.8) 2.4 % 1.2 %

The Official forecast is based on the October 2017 Global Insight Standard outlook and the corresponding Virginia state forecast developed by the Department of Taxation.The December forecast is based on the October 2018 IHS Markit Standard outlook and the corresponding Virginia state forecast developed

The Official and December Commonwealth Transportation Fund Update for Fiscal Year 2020(Dollars in Millions)

December 18, 2018

Fiscal Year 2020Official December % Growth over FY 19

Forecast Forecast Change Official December

Highway Maintenance & Operating Fund

Motor Fuels Tax $ 730.1 $ 729.7 $ (0.4) 0.8 % 1.3 %Road Tax 1.4 3.2 1.8 (17.6) (8.6)Motor Vehicle Sales And Use Tax 723.2 692.2 (31.0) 1.0 0.6Motor Vehicle License Fees 239.1 239.0 (0.1) 1.0 1.0Retail Sales and Use Tax 299.2 312.7 13.5 2.2 3.9International Registration Plan 65.0 65.0 0.0 1.2 (3.8)Miscellaneous 17.2 17.9 0.7 0.0 0.0Total State Taxes and Fees (HMOF) $ 2,075.2 $ 2,059.7 $ (15.5) 1.1 % 1.2 %

Transportation Trust Fund

Motor Fuels Tax $ 173.4 $ 173.3 $ (0.1) 0.8 % 1.3 %Insurance Premiums Tax (1/3) 184.4 188.0 3.6 4.4 11.4Road Tax 8.6 8.7 0.1 0.0 1.2Motor Vehicle Sales And Use Tax 239.3 229.1 (10.2) 1.0 0.6Motor Vehicle License Fees 22.9 22.3 (0.6) 1.8 1.4Retail Sales and Use Tax 792.2 802.8 10.6 2.2 3.9Recordation Tax 48.3 43.6 (4.7) 0.0 0.0Interest Earnings 4.5 4.0 (0.5) 7.1 5.3Rental Tax 43.2 43.5 0.3 1.9 3.3Aviation Fuels Tax 1.9 2.0 0.1 0.0 5.3Total State Taxes and Fees (TTF) $ 1,518.7 $ 1,517.3 $ (1.4) 2.0 % 3.8 %

Total HMOF And TTF

Motor Fuels Tax $ 903.5 $ 903.0 $ (0.5) 0.8 % 1.3 %Insurance Premiums Tax (1/3) 184.4 188.0 3.6 4.4 11.4Road Tax 10.0 11.9 1.9 (2.9) (1.7)Motor Vehicle Sales and Use Tax 962.5 921.3 (41.2) 1.0 0.6Motor Vehicle License Fees 262.0 261.3 (0.7) 1.1 1.0International Registration Plan 65.0 65.0 0.0 1.2 (3.8)Retail Sales and Use Tax 1,091.4 1,115.5 24.1 2.2 3.9Recordation Tax (3 cents) 48.3 43.6 (4.7) 0.0 0.0Interest Earnings 4.5 4.0 (0.5) 7.1 5.3Rental Tax 43.2 43.5 0.3 1.9 3.3Aviation Fuels Tax 1.9 2.0 0.1 0.0 5.3Miscellaneous 17.2 17.9 0.7 0.0 0.0

Total State Taxes and Fees $ 3,593.9 $ 3,577.0 $ (16.9) 1.5 % 2.3 %

Transfers per the Appropriations ActRetail Sales Tax - AST (TTF) 0.0 0.0 0.0 n/a n/aTotal Transfers $ 0.0 $ 0.0 $ 0.0 n/a % n/a %

Total Transportation Fund $ 3,593.9 $ 3,577.0 $ (16.9) 1.5 % 2.3 %

The Official forecast is based on the October 2017 Global Insight Standard outlook and the corresponding Virginia state forecast developed by the Department of Taxation.The December forecast is based on the October 2018 IHS Markit Standard outlook and the corresponding Virginia state forecast developed

The December Commonwealth Transportation Fund Update for Fiscal Years 2021 through 2024(Dollars in Millions)

December 18, 2018

Fiscal Years 2021 through 2024FY 21 % FY 22 % FY 23 % FY 24 %

Forecast Growth Forecast Growth Forecast Growth Forecast Growth

Highway Maintenance & Operating Fund Highw

Motor Fuels Tax 733.3$ 0.5 733.7$ 0.1 732.3$ (0.2) 730.2$ (0.3)Road Tax 2.7 (15.6) 2.7 0.0 2.8 (3.7) 2.8 0.0Motor Vehicle Sales And Use Tax 696.3 0.6 713.5 2.5 723.1 1.3 735.7 1.7Motor Vehicle License Fees 239.2 0.1 239.2 0.0 239.2 0.0 239.2 0.0Retail Sales and Use Tax 322.2 3.0 329.7 2.3 337.2 2.3 344.7 2.2International Registration Plan 65.7 1.1 66.1 0.6 66.0 (0.2) 66.3 0.5Miscellaneous 17.9 0.0 17.9 0.0 17.9 0.0 17.9 0.0Total State Taxes and Fees (HMOF) 2,077.3$ 0.9 2,102.8$ 1.2% 2,118.5$ 0.7% 2,136.8$ 0.9%

Transportation Trust Fund Trans

Motor Fuels Tax 174.1 0.5 174.3 0.1 173.9 (0.2) 173.3 (0.3)Insurance Premiums Tax (1/3) 199.4 6.1 199.8 0.2 209.0 4.6 218.0 4.3Road Tax 8.6 (1.1) 8.5 (1.2) 8.3 (2.4) 8.2 (1.2)Motor Vehicle Sales And Use Tax 230.3 0.5 235.8 2.4 238.8 1.3 242.9 1.7Motor Vehicle License Fees 22.3 0.0 22.3 0.0 22.3 0.0 22.3 0.0Retail Sales and Use Tax 827.2 3.0 846.4 2.3 865.8 2.3 884.9 2.2Recordation Tax 43.6 0.0 43.6 0.0 43.6 0.0 43.6 0.0Interest Earnings 4.0 0.0 4.0 0.0 4.0 0.0 4.0 0.0Rental Tax 44.2 1.6 44.2 0.0 44.2 0.0 44.2 0.0Aviation Fuels Tax 1.9 (5.0) 2.0 5.3 2.0 0.0 2.0 0.0Total State Taxes and Fees (TTF) 1,555.6$ 2.5 1,580.9$ 1.6% 1,611.9$ 2.0% 1,643.4$ 2.0%

Total HMOF And TTF Total

Motor Fuels Tax 907.4 0.5 908.0 0.1 906.2 (0.2) 903.5 (0.3)Insurance Premiums Tax (1/3) 199.4 6.1 199.8 0.2 209.0 4.6 218.0 4.3Road Tax 11.3 (5.0) 11.2 (0.9) 11.1 (0.9) 11.0 (0.9)Motor Vehicle Sales and Use Tax 926.6 0.6 949.3 2.4 961.9 1.3 978.6 1.7Motor Vehicle License Fees 261.5 0.1 261.5 0.0 261.5 0.0 261.5 0.0International Registration Plan 65.7 1.1 66.1 0.6 66.0 (0.2) 66.3 0.5Retail Sales and Use Tax 1,149.4 3.0 1,176.1 2.3 1,203.0 2.3 1,229.6 2.2Recordation Tax (3 cents) 43.6 0.0 43.6 0.0 43.6 0.0 43.6 0.0Interest Earnings 4.0 0.0 4.0 0.0 4.0 0.0 4.0 0.0Rental Tax 44.2 1.6 44.2 0.0 44.2 0.0 44.2 0.0Aviation Fuels Tax 1.9 (5.0) 2.0 5.3 2.0 0.0 2.0 0.0Miscellaneous 17.9 0.0 17.9 0.0 17.9 0.0 17.9 0.0

Total State Taxes and Fees 3,632.9$ 1.6 3,683.7$ 1.4% 3,730.4$ 1.3% 3,780.2$ 1.3% Total

Transfers per the Appropriations Act TransRetail Sales Tax - AST (TTF) 0.0 n/a 0.0 n/a 0.0 n/a 0.0 n/aTotal Transfers -$ n/a -$ n/a -$ n/a -$ n/a

Total Transportation Fund 3,632.9$ 1.6 3,683.7$ 1.4% 3,730.4$ 1.3% 3,780.2$ 1.3% Total

The Official forecast is based on the October 2017 Global Insight Standard outlook and the corresponding Virginia state forecast developed The Ofby the Department of Taxation. by the The December forecast is based on the October 2018 IHS Markit Standard outlook and the corresponding Virginia state forecast developed The De

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(Dollars in Millions) November 19, 2018

MAJOR TAX SOURCES

Corporate Income $ 912.0 $ 848.4 $ (63.6) 5.8 % (1.6) %Individual Income Tax:


Refunds (2,054.7) (2,011.5) 43.2 7.7 5.4Net 14,183.8 14,453.4 269.6 0.6 2.5





Excess & Other Fees from Officers (7.9) (7.6) 0.3 3.2 (0.8)Estate & Gifts 0.0 0.0 0.0 n/a n/aInstitutional Revenues 2.1 2.6 0.5 (23.9) (5.7)Interest & Rents 66.5 68.8 2.3 7.7 11.4

Licenses & Permits 4.2 4.1 (0.1) 4.8 2.3Miscellaneous Taxes and Penalties 234.9 232.0 (2.9) 2.5 1.2Other Miscellaneous Revenues 36.0 27.0 (9.0) 85.1 38.8Public Service GR / Consumption Tax 98.0 98.7 0.7 (0.7) % 0.0



TRANSFERS

A.B.C. Profits $ 109.8 $ 112.9 $ 3.1 0.3 % 3.1 %Sales Tax (0.375%) 386.7 389.9 3.2 2.7 3.5Transfers Per Appropriations Act 124.5 124.5 0.0 (12.4) (12.4)

Total Transfers $ 621.0 $ 627.3 $ 6.3 (1.2) % (0.2) %


The Official and November General Fund Forecast for Fiscal Year 2019

Fiscal Year 2019November

The Official forecast is based on the October 2017 IHS Markit Standard Outlook and the corresponding Virginia state forecast developed by the Department of Taxation with recommendations from GACRE. It includes actions of the 2018 General Assembly Session. Chapters 1 and 2.The November forecast is based on the October 2018 IHS Markit Standard Outlook and the corresponding Virginia state forecast developed by the Department of Taxation with recommendations from JABE and contains the same policy assumptions in Chapter 2.

OfficalForecast Forecast Change Offical November

% Growth Over FY 18


MAJOR TAX SOURCES

Corporate Income $ 926.4 $ 876.2 $ (50.2) 1.6 % 3.3 % $ 1,838.4 $ 1,724.6 $ (113.8)Individual Income Tax:

Gross 17,003.5 17,187.8 184.3 4.7 4.4 33,242.0 33,652.7 410.7Withholding 13,368.5 13,469.7 101.2 3.9 4.1 26,238.7 26,413.6 174.9Nonwithholding 3,635.0 3,718.1 83.1 7.9 5.6 7,003.3 7,239.1 235.8

Refunds (2,147.3) (2,115.1) 32.2 4.5 5.2 (4,202.0) (4,126.6) 75.4Net 14,856.2 15,072.7 216.5 4.7 4.3 29,040.0 29,526.1 486.1

Insurance Company Premiums 406.0 410.3 4.3 7.8 3.8 782.6 805.6 23.0State Sales & Use Tax 3,625.2 3,675.2 50.0 2.2 2.3 7,172.5 7,266.3 93.8Wills, Suits, Deeds, & Contract Fees 407.2 368.6 (38.6) 0.0 0.0 814.4 737.2 (77.2)

Total Major Tax Sources $ 20,221.0 $ 20,403.0 $ 182.0 4.1 % 3.8 % $ 39,647.9 $ 40,059.8 $ 411.9




Licenses & Permits 4.2 4.1 (0.1) 0.0 0.0 8.4 8.2 (0.2)Miscellaneous Taxes and Penalties 240.3 232.7 (7.6) 2.3 0.3 475.2 464.7 (10.5)Other Miscellaneous Revenues 32.5 23.6 (8.9) (9.7) (12.6) 68.5 50.6 (17.9)Public Service GR / Consumption Tax 98.0 98.7 0.7 0.0 0.0 196.0 197.4 1.4


TOTAL GF REVENUES $ 20,984.6 $ 21,158.0 $ 173.4 4.0 % 3.7 % $ 41,158.3 $ 41,558.1 $ 399.8

TRANSFERS

A.B.C. Profits $ 115.5 $ 117.2 $ 1.7 5.2 % 3.8 % $ 225.3 $ 230.1 $ 4.8Sales Tax (0.375%) 395.2 399.0 3.8 2.2 2.3 781.9 788.9 7.0Transfers Per Appropriations Act 120.3 120.3 0.0 (3.4) (3.4) 244.8 244.8 0.0

Total Transfers $ 631.0 $ 636.5 $ 5.5 1.6 % 1.5 % $ 1,252.0 $ 1,263.8 $ 11.8

TOTAL GENERAL FUND $ 21,615.6 $ 21,794.5 $ 178.9 3.9 % 3.6 % $ 42,410.3 $ 42,821.9 $ 411.6


The Official forecast is based on the October 2017 IHS Markit Standard Outlook and the corresponding Virginia state forecast developed by the Department of Taxation with recommendations from GACRE. It includes actions of the 2018 General Assembly Session. Chapters 1 and 2.The November forecast is based on the October 2018 IHS Markit Standard Outlook and the corresponding Virginia state forecast developed by the Department of Taxation with recommendations from JABE and contains the same policy assumptions in Chapter 2.

ChangeNovemberOfficial November

Fiscal Year 2020

The Official and November General Fund Forecast for Fiscal Year 2020November 19, 2018

% Growth Over FY 19 NovemberOfficial Forecast ForecastForecast Forecast Change


MAJOR TAX SOURCES

Corporate Income $ 898.0 2.5 % $ 920.3 2.5 % $ 1,818.3 5.4 %Individual Income Tax:

Gross 17,907.8 4.2 18,641.5 4.1 36,549.3 8.6Withholding 14,039.8 4.2 14,607.4 4.0 28,647.2 8.5Nonwithholding 3,868.0 4.0 4,034.1 4.3 7,902.1 9.2

Refunds (2,235.2) 5.7 (2,325.4) 4.0 (4,560.6) 10.5Net 15,672.6 4.0 16,316.1 4.1 31,988.7 8.3

Insurance Company Premiums 412.9 0.6 435.9 5.6 848.8 5.4State Sales & Use Tax 3,761.1 2.3 3,850.3 2.4 7,611.4 4.7Wills, Suits, Deeds, & Contract Fees 368.6 0.0 368.6 0.0 737.2 0.0





Licenses & Permits 4.1 0.0 4.1 0.0 8.2 0.0Miscellaneous Taxes and Penalties 233.1 0.2 233.1 0.0 466.2 0.3Other Miscellaneous Revenues 23.6 0.0 23.6 0.0 47.2 (6.7)Public Service GR / Consumption Tax 98.7 0.0 98.7 0.0 197.4 0.0



TRANSFERS

A.B.C. Profits $ 118.4 1.0 % $ 122.2 3.2 % $ 240.6 4.6 %Sales Tax (0.375%) 408.3 2.3 418.0 2.4 826.3 4.7Transfers Per Appropriations Act 115.0 (4.4) 115.0 0.0 230.0 (6.0)

Total Transfers $ 641.7 0.8 % $ 655.2 2.1 % $ 1,296.9 2.6 %


November 19, 2018


The November General Fund Forecast for Fiscal Years 2020-22

November % Growth Over 18-20Forecast Forecast Forecast

November % Growth Over FY 20

November % Growth Over FY 21

The November forecast is based on the October 2018 IHS Markit Standard Outlook and the corresponding Virginia state forecast developed by the Department of Taxation with recommendations from JABE and contains the same policy assumptions in Chapter 2.The Official forecast is based on the October 2017 IHS Markit Standard Outlook and the corresponding Virginia state forecast developed by the Department of Taxation with recommendations from GACRE. It includes actions of the 2018 General Assembly Session. Chapters 1 and 2.


MAJOR TAX SOURCES

Corporate Income $ 956.2 $ 997.4 $ 1,037.9 $ 1,077.8Individual Income Tax:

Gross 19,410.7 20,187.9 20,975.2 21,798.8Withholding 15,181.0 15,764.7 16,353.9 16,952.8Nonwithholding 4,229.7 4,423.2 4,621.3 4,846.0

Refunds (2,419.1) (2,514.2) (2,609.9) (2,675.8)Net 16,991.6 17,673.7 18,365.3 19,123.0









TRANSFERS


Total Transfers $ 665.0 $ 674.7 $ 684.6 $ 694.7


$ Change From Previous Year $ 829.1 $ 841.3 $ 851.5 $ 922.6


$ Change From Previous Biennium $ 3,299.4 $ 3,467.0% Growth From Previous Biennium 7.2 7.1 %

2023 2024 2025 2026Fiscal Year Fiscal Year

The November General Fund Forecast for Fiscal Years 2023-26November 19, 2018



MAJOR TAX SOURCES

Corporate Income 3.9 % 4.3 % 4.1 % 3.8 %Individual Income Tax:

Gross 4.1 4.0 3.9 3.9Withholding 3.9 3.8 3.7 3.7Nonwithholding 4.8 4.6 4.5 4.9

Refunds 4.0 3.9 3.8 2.5Net 4.1 4.0 3.9 4.1


Total Major Tax Sources 3.7 % 3.7 % 3.6 % 3.7 %






TOTAL GF REVENUES 3.6 % 3.5 % 3.5 % 3.6 %

TRANSFERS


Total Transfers 1.5 % 1.5 % 1.5 % 1.5 %

TOTAL GENERAL FUND 3.6 % 3.5 % 3.4 % 3.6 %

% Growth % GrowthOver FY 18 Over FY 19 Over FY 20 Over FY 21% Growth % Growth

FY 21 FY 22

The November General Fund Forecast for Fiscal Years 2023-26November 19, 2018

FY 19 FY 20

(Dollars in Millions) November 19, 2018

MAJOR TAX SOURCES

Corporate Income $ 912.0 $ 824.8 $ (87.2) 5.8 % (4.3) %Individual Income Tax:


Refunds (2,054.7) (2,011.5) 43.2 7.7 5.4Net 14,183.8 14,370.9 187.1 0.6 1.9





Excess & Other Fees from Officers (7.9) (7.6) 0.3 3.2 (0.8)Estate & Gifts 0.0 0.0 0.0 n/a n/aInstitutional Revenues 2.1 2.6 0.5 (23.9) (5.7)Interest & Rents 66.5 68.8 2.3 7.7 % 11.4

Licenses & Permits 4.2 4.1 (0.1) 4.8 % 2.3Miscellaneous Taxes and Penalties 234.9 232.0 (2.9) 2.5 % 1.2Other Miscellaneous Revenues 36.0 27.0 (9.0) 85.1 % 38.8Public Service GR / Consumption Tax 98.0 98.7 0.7 (0.7) % 0.0



TRANSFERS

A.B.C. Profits $ 109.8 $ 112.9 $ 3.1 0.3 % 3.1 %Sales Tax (0.375%) 386.7 389.9 3.2 2.7 3.5Transfers Per Appropriations Act 124.5 124.5 0.0 (12.4) (12.4)

Total Transfers $ 621.0 $ 627.3 $ 6.3 (1.2) % (0.2) %


OfficalForecast Forecast Change Offical Nov Pess

% Growth Over FY 18

The Official and November Pessimistic General Fund Forecast for Fiscal Year 2019

Fiscal Year 2019Nov Pess

The Official forecast is based on the October 2017 IHS Markit Standard Outlook and the corresponding Virginia state forecast developed by the Department of Taxation with recommendations from GACRE. It includes actions of the 2018 General Assembly Session. Chapters 1 and 2.The November forecast is based on the October 2018 IHS Markit Pessimistic Outlook and the corresponding Virginia state forecast developed by the Department of Taxation with recommendations from JABE and contains the same policy assumptions in Chapter 2.


MAJOR TAX SOURCES

Corporate Income $ 926.4 $ 820.9 $ (105.5) 1.6 % (0.5) % $ 1,838.4 $ 1,645.7 $ (192.7)Individual Income Tax:

Gross 17,003.5 16,857.2 (146.3) 4.7 2.9 33,242.0 33,239.6 (2.4)Withholding 13,368.5 13,286.9 (81.6) 3.9 3.2 26,238.7 26,158.3 (80.4)Nonwithholding 3,635.0 3,570.3 (64.7) 7.9 1.7 7,003.3 7,081.3 78.0

Refunds (2,147.3) (2,115.1) 32.2 4.5 5.2 (4,202.0) (4,126.6) 75.4Net 14,856.2 14,742.1 (114.1) 4.7 2.6 29,040.0 29,113.0 73.0

Insurance Company Premiums 406.0 410.5 4.5 7.8 4.0 782.6 805.2 22.6State Sales & Use Tax 3,625.2 3,612.3 (12.9) 2.2 0.6 7,172.5 7,203.4 30.9Wills, Suits, Deeds, & Contract Fees 407.2 339.4 (67.8) 0.0 (7.4) 814.4 705.8 (108.6)

Total Major Tax Sources $ 20,221.0 $ 19,925.2 $ (295.8) 4.1 % 1.9 % $ 39,647.9 $ 39,473.1 $ (174.8)




Licenses & Permits 4.2 4.1 (0.1) 0.0 0.0 8.4 8.2 (0.2)Miscellaneous Taxes and Penalties 240.3 232.7 (7.6) 2.3 0.3 475.2 464.7 (10.5)Other Miscellaneous Revenues 32.5 23.6 (8.9) (9.7) (12.6) 68.5 50.6 (17.9)Public Service GR / Consumption Tax 98.0 98.7 0.7 0.0 0.0 196.0 197.4 1.4


TOTAL GF REVENUES $ 20,984.6 $ 20,680.2 $ (304.4) 4.0 % 1.9 % $ 41,158.3 $ 40,971.4 $ (186.9)

TRANSFERS

A.B.C. Profits $ 115.5 $ 117.2 $ 1.7 5.2 % 3.8 % $ 225.3 $ 230.1 $ 4.8Sales Tax (0.375%) 395.2 399.0 3.8 2.2 2.3 781.9 788.9 7.0Transfers Per Appropriations Act 120.3 120.3 0.0 (3.4) (3.4) 244.8 244.8 0.0

Total Transfers $ 631.0 $ 636.5 $ 5.5 1.6 % 1.5 % $ 1,252.0 $ 1,263.8 $ 11.8

TOTAL GENERAL FUND $ 21,615.6 $ 21,316.7 $ (298.9) 3.9 % 1.9 % $ 42,410.3 $ 42,235.2 $ (175.1)

Nov PessOfficial Forecast ForecastForecast Forecast Change

Official Nov PessFiscal Year 2020

The Official and November Pessimistic General Fund Forecast for Fiscal Year 2020November 19, 2018

% Growth Over FY 19ChangeNov Pess


The Official forecast is based on the October 2017 IHS Markit Standard Outlook and the corresponding Virginia state forecast developed by the Department of Taxation with recommendations from GACRE. It includes actions of the 2018 General Assembly Session. Chapters 1 and 2.The November forecast is based on the October 2018 IHS Markit Pessimistic Outlook and the corresponding Virginia state forecast developed by the Department of Taxation with recommendations from JABE and contains the same policy assumptions in Chapter 2.


MAJOR TAX SOURCES

Corporate Income $ 858.8 4.6 % $ 898.1 4.6 % $ 1,756.9 6.8 %Individual Income Tax:

Gross 17,324.9 2.8 18,024.7 4.0 35,349.6 6.3Withholding 13,788.1 3.8 14,364.4 4.2 28,152.5 7.6Nonwithholding 3,536.8 (0.9) 3,660.3 3.5 7,197.1 1.6

Refunds (2,235.2) 5.7 (2,325.4) 4.0 (4,560.6) 10.5Net 15,089.7 2.4 15,699.3 4.0 30,789.0 5.8

Insurance Company Premiums 399.9 (2.6) 427.2 6.8 827.1 2.7State Sales & Use Tax 3,667.0 1.5 3,751.7 2.3 7,418.7 3.0Wills, Suits, Deeds, & Contract Fees 339.4 0.0 339.4 0.0 678.8 (3.8)





Licenses & Permits 4.1 0.0 4.1 0.0 8.2 0.0Miscellaneous Taxes and Penalties 233.1 0.2 233.1 0.0 466.2 0.3Other Miscellaneous Revenues 23.6 0.0 23.6 0.0 47.2 (6.7)Public Service GR / Consumption Tax 98.7 0.0 98.7 0.0 197.4 0.0



TRANSFERS

A.B.C. Profits $ 118.4 1.0 % $ 122.2 3.2 % $ 240.6 4.6 %Sales Tax (0.375%) 408.3 2.3 418.0 2.4 826.3 4.7Transfers Per Appropriations Act 115.0 (4.4) 115.0 0.0 230.0 (6.0)

Total Transfers $ 641.7 0.8 % $ 655.2 2.1 % $ 1,296.9 2.6 %


Nov Pess % Growth Over 18-20Forecast Forecast Forecast

Nov Pess % Growth Over FY 20

Nov Pess % Growth Over FY 21

The November forecast is based on the October 2018 IHS Markit Pessimistic Outlook and the corresponding Virginia state forecast developed by the Department of Taxation with recommendations from JABE and contains the same policy assumptions in Chapter 2.The Official forecast is based on the October 2017 IHS Markit Standard Outlook and the corresponding Virginia state forecast developed by the Department of Taxation with recommendations from GACRE. It includes actions of the 2018 General Assembly Session. Chapters 1 and 2.

The November Pessimistic General Fund Forecast for Fiscal Years 2020-22November 19, 2018



MAJOR TAX SOURCES

Corporate Income $ 937.0 $ 928.3 $ 954.1 $ 987.5Individual Income Tax:

Gross 18,843.8 19,677.9 4,195.3 21,417.8Withholding 14,976.5 15,604.5 (103.7) 16,868.1Nonwithholding 3,867.3 4,073.4 4,298.9 4,549.7

Refunds (2,419.1) (2,514.2) (2,609.9) (2,675.8)Net 16,424.7 17,163.7 1,585.4 18,742.0









TRANSFERS


Total Transfers $ 665.0 $ 674.7 $ 684.6 $ 694.7


$ Change From Previous Year $ 885.5 $ 850.8 $ (15,428.9) $ 17,319.8


$ Change From Previous Biennium $ 3,404.6 $ (12,687.2)% Growth From Previous Biennium 7.7 (26.6) %


Fiscal Year Fiscal Year2023 2024 2025 2026



MAJOR TAX SOURCES

Corporate Income 4.3 % (0.9) % 2.8 % 3.5 %Individual Income Tax:

Gross 4.5 4.4 (78.7) 410.5Withholding 4.3 4.2 (100.7) (16,374.1)Nonwithholding 5.7 5.3 5.5 5.8

Refunds 4.0 3.9 3.8 2.5Net 4.6 4.5 (90.8) 1,082.2


Total Major Tax Sources 4.1 % 3.8 % (67.6) % 234.1 %






TOTAL GF REVENUES 4.0 % 3.7 % (65.4) % 212.0 %

TRANSFERS


Total Transfers 1.5 % 1.5 % 1.5 % 1.5 %

TOTAL GENERAL FUND 3.9 % 3.6 % (63.5) % 195.7 %

FY 21 FY 22


FY 19 FY 20% Growth % Growth

Over FY 18 Over FY 19 Over FY 20 Over FY 21% Growth % Growth

Growth in Total General Fund RevenuesFiscal Year 1961 - Fiscal Year 2020

(Nominal - Actual Dollars)

FY Total Revenues Growth FY Total Revenues Growth

61 230,998,887 - 91 5,471,879,000 -0.4%

62 242,144,567 4.8% 92 5,623,213,000 2.8%

63 286,304,265 18.2% 93 6,133,637,000 9.1%

64 298,033,919 4.1% 94 6,503,368,000 6.0%

65 323,213,412 8.4% 95 6,881,145,000 5.8%

66 365,129,776 13.0% 96 7,356,110,000 6.9%

67 414,755,644 13.6% 97 7,949,327,000 8.1%

68 533,597,744 28.7% 98 8,773,520,000 10.4%

69 706,254,374 32.4% 99 9,702,747,000 10.6%

70 743,721,322 5.3% 00 10,788,482,000 11.2%

71 807,954,651 8.6% 01 11,105,275,000 2.9%

72 922,653,686 14.2% 02 10,678,954,000 -3.8%

73 1,054,469,443 14.3% 03 10,867,149,000 1.8%

74 1,168,562,871 10.8% 04 11,917,867,000 9.7%

75 1,303,178,893 11.5% 05 13,687,252,000 14.8%

76 1,428,421,157 9.6% 06 14,834,298,000 8.4%

77 1,636,301,819 14.6% 07 15,565,827,000 4.9%

78 1,923,085,084 17.5% 08 15,766,951,000 1.3%

79 2,115,211,522 10.0% 09 14,315,060,000 -9.2%

80 2,344,928,934 10.9% 10 14,219,477,000 -0.7%

81 2,579,663,941 10.0% 11 15,040,200,000 5.8%

82 2,796,458,741 8.4% 12 15,846,665,000 5.4%

83 2,975,687,935 6.4% 13 16,684,600,000 5.3%

84 3,397,710,261 14.2% 14 16,411,400,000 -1.6%

85 3,790,816,000 11.6% 15 17,735,600,000 8.1%

86 4,131,778,000 9.0% 16 18,040,100,000 1.7%

87 4,590,434,000 11.1% 17 18,695,100,000 3.6%

88 5,054,382,000 10.1% 18 19,880,800,000 6.3%

89 5,478,912,000 8.4% 19* 21,050,600,000 5.9%

90 5,494,884,000 0.3% 20* 21,689,000,000 3.0%

* December 18, 2018 forecast (excludes transfers)

Growth in Total General Fund RevenuesFiscal Year 1961 - Fiscal Year 2020

(Real -- Inflation-Adjusted Dollars)

FY Total Revenues Growth FY Total Revenues Growth

61 1,393,511,316 - 91 8,473,713,023 -4.5%

62 1,447,064,673 3.8% 92 8,476,449,462 0.0%

63 1,690,806,502 16.8% 93 9,007,569,655 6.3%

64 1,735,833,420 2.7% 94 9,346,974,765 3.8%

65 1,857,148,097 7.0% 95 9,675,196,670 3.5%

66 2,060,290,178 10.9% 96 10,140,554,028 4.8%

67 2,278,689,361 10.6% 97 10,730,153,609 5.8%

68 2,843,579,771 24.8% 98 11,710,322,505 9.1%

69 3,610,199,865 27.0% 99 12,822,787,704 9.5%

70 3,629,546,610 0.5% 00 13,960,702,662 8.9%

71 3,774,078,153 4.0% 01 14,032,398,179 0.5%

72 4,151,282,571 10.0% 02 13,330,945,679 -5.0%

73 4,573,067,960 10.2% 03 13,314,565,938 -0.1%

74 4,689,962,860 2.6% 04 14,308,279,758 7.5%

75 4,740,685,515 1.1% 05 16,008,481,871 11.9%

76 4,878,071,056 2.9% 06 16,829,760,645 5.1%

77 5,283,719,294 8.3% 07 17,256,296,994 2.5%

78 5,822,942,784 10.2% 08 16,961,735,660 -1.7%

79 5,944,652,868 2.1% 09 15,225,993,102 -10.2%

80 5,977,044,228 0.5% 10 14,955,748,499 -1.8%

81 5,966,334,253 -0.2% 11 15,543,016,587 3.9%

82 6,044,861,556 1.3% 12 15,978,608,359 2.8%

83 6,133,605,283 1.5% 13 16,571,705,258 3.7%

84 6,732,471,910 9.8% 14 16,067,003,774 -3.0%

85 7,257,233,656 7.8% 15 17,220,659,237 7.2%

86 7,678,421,862 5.8% 16 17,679,040,002 2.7%

87 8,350,380,871 8.8% 17 17,773,668,586 0.5%

88 8,869,593,142 6.2% 18 18,553,959,940 4.4%

89 9,208,062,016 3.8% 19* 19,226,083,160 3.6%

90 8,877,535,887 -3.6% 20* 19,386,170,159 0.8%

* December 18, 2018 Forecast (Excludes Transfers)

Shaded areas indicate years in which there was a national recession.

For Fiscal Years 2019 Through 2024

Actual2018 2019 2020 2021 2022 2023 2024

Taxes:Motor vehicle fuel tax $897.7 $948.3 $960.2 $966.9 $967.5 $965.7 $962.9Unemployment compensation payroll tax $434.6 $358.0 $354.8 $354.8 $354.8 $354.8 $354.8Special highway tax from sales tax $724.9 $776.4 $793.5 $811.8 $822.9 $840.6 $858.1Motor vehicle sales tax and use tax $943.7 $916.1 $921.3 $926.6 $949.3 $961.9 $978.6Other taxes $1,518.7 $1,548.2 $1,590.6 $1,624.4 $1,637.2 $1,656.8 $1,676.0

Total $4,519.5 $4,547.0 $4,620.4 $4,684.4 $4,731.7 $4,779.7 $4,830.5

Rights and privileges:Motor Vehicle Licenses $344.6 $347.3 $350.9 $351.2 $351.2 $351.2 $351.3Other Rights & Privileges $1,363.3 $830.5 $856.2 $860.7 $843.2 $846.4 $856.4

Total $1,707.9 $1,177.9 $1,207.1 $1,211.9 $1,194.4 $1,197.6 $1,207.6

Sales of property and commodities:Alocholic Beverage Sales $812.2 $1,031.0 $1,078.4 $1,124.3 $1,172.0 $1,221.9 $1,273.8Other Sales $905.6 $792.0 $784.4 $790.3 $793.2 $793.5 $793.8

Total $1,717.9 $1,823.0 $1,862.9 $1,914.6 $1,965.2 $2,015.4 $2,067.6

$759.6 $1,188.9 $1,645.6 $1,859.2 $1,954.8 $2,057.7 $2,167.0

Institutional revenue:Institutions of Higher Education ² $2,703.2 $6,437.4 $6,644.9 $6,901.2 $6,946.7 $7,101.0 $7,255.9Other Educational Institutions $3.6 $3.2 $3.1 $3.1 $2.9 $2.9 $3.0Medical Hospitals ² $0.0 $1,874.9 $2,075.9 $2,182.4 $2,313.1 $2,432.1 $2,558.0Mental Hospitals $200.3 $164.2 $167.4 $161.0 $150.1 $151.1 $161.0Corrections $49.9 $56.9 $56.9 $57.4 $57.1 $57.6 $57.6Other Institutions $70.1 $75.8 $75.7 $77.0 $77.7 $80.0 $80.6

Total $3,027.1 $8,612.4 $9,023.8 $9,382.0 $9,547.6 $9,824.6 $10,116.1

Interest dividends and rents: $263.6 $189.4 $201.6 $208.1 $215.5 $223.5 $232.6

Grants and donations:Federal grants and contracts $9,502.9 $11,370.3 $14,018.9 $14,068.1 $14,220.2 $14,383.9 $14,509.6Other grants & contracts $245.9 $414.3 $352.1 $350.1 $346.7 $343.3 $339.7

Total $9,748.8 $11,784.6 $14,371.0 $14,418.2 $14,566.9 $14,727.2 $14,849.3

Other Revenue: $2,518.1 $2,595.8 $2,642.3 $2,711.8 $2,360.0 $2,537.8 $2,375.2

$24,262.4 $31,918.9 $35,574.6 $36,390.1 $36,536.1 $37,363.5 $37,845.9

$ Amount change from previous year $7,656.5 $3,655.7 $815.5 $146.0 $827.4 $482.4% Change from previous year 31.6% 11.5% 2.3% 0.4% 2.3% 1.3%

Total Nongeneral Fund Revenue: ¹

¹ Page 1 totals adjusted to reflect lottery proceeds being listed separately.

² Per the Management Agreement between the tier 3 schools and the Commonwealth as set forth in Chapters 933 and 943 of the 2006 Acts of Assembly, the type 3 schools are not required to report actual revenue collections in Cardinal.

NONGENERAL FUND REVENUE PROJECTIONS

Assessment & Receipts forSupport of Special Services:

$ (Millions)

12/11/2018

FY 2

019

Estim

ate

Per C

hapt

er 2

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

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201

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a %

of

%%

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By

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enue

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ate

Gen

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hang

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dual

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me

Tax:

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hold

ing

$12,

870,

200

63.7

9$1

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$5,0

53,7

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ents

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ater

than

or e

qual

to 1

,000

%.

- 2 -

Year

-To-

Dat

e

Com

mon

wea

lth o

f Virg

inia

/Dep

artm

ent o

f Acc

ount

sG

ener

al F

und

Stat

emen

t of R

even

ue C

olle

ctio

ns a

nd E

stim

ates

For

the

Fisc

al Y

ears

201

8 an

d 20

19(D

olla

rs in

Tho

usan

ds)

Nov

embe

r

(a)

Inte

rest

is e

arne

d m

onth

ly in

the

Gen

eral

Fun

d an

d cr

edite

d to

non

gene

ral f

unds

on

a qu

arte

rly b

asis

. Th

is w

ill o

ccur

in th

e m

onth

s of

Oct

ober

, Jan

uary

, Apr

il an

d Ju

ne.

% A

nnua

lG

row

thFY

201

9%

%R

equi

red

Estim

ate

(a)

FY 2

019

(b)

FY 2

018

Cha

nge

FY 2

019

(b)

FY 2

018

Cha

nge

(c)

By

Estim

ate

Lotte

ry C

olle

ctio

ns

Tota

l Lot

tery

Sal

es$2

,134

,426

$179

,223

$167

,558

7.0

$957

,052

$855

,443

11.9

(0.3

)O

ther

Inco

me

541

325

149

118.

11,

023

299

242.

1(4

3.1)

Tota

l Inc

ome

$2,1

34,9

67$1

79,5

48$1

67,7

077.

1$9

58,0

75$8

55,7

4212

.0(0

.3)

Less

:

Priz

e Ex

pens

es$1

,311

,464

$120

,050

$102

,251

17.4

$592

,291

$511

,765

15.7

0.3

R

etai

ler C

omm

issi

ons

120,

080

10,1

999,

320

9.4

53,4

6248

,723

9.7

(1.0

)

Ope

ratin

g Ex

pens

es11

0,89

08,

721

8,86

6(1

.6)

46,0

2243

,723

5.3

5.1

To

tal E

xpen

ses

$1,5

42,4

34$1

38,9

70$1

20,4

3715

.4$6

91,7

75$6

04,2

1114

.50.

5

Net

Pro

ceed

s fro

m O

pera

tions

N

et L

otte

ry T

icke

t Pro

fits

$592

,533

$40,

578

$47,

270

(14.

2)$2

66,3

00$2

51,5

315.

9(0

.7)

Pr

ior Y

ear R

esid

ual P

rofit

Tra

nsfe

r0

00

-9,

563

11,8

19(1

9.1)

-Av

aila

ble

to L

otte

ry P

roce

eds

Fund

$592

,533

$40,

578

$47,

270

(14.

2)$2

75,8

63$2

63,3

504.

8(2

.6)

# P

erce

ntag

e is

gre

ater

than

or e

qual

to 1

,000

%.

(a)

Estim

ate

esta

blis

hed

by C

hapt

er 2

, 201

8 Vi

rgin

ia A

cts

of A

ssem

bly

Spec

ial S

essi

on I.

The

Prio

r Yea

r Res

idua

l Pro

fit T

rans

fer

of $

9,56

3,10

9 w

as m

ade

on A

ugus

t 13,

201

8. T

he F

Y 20

19 e

stim

ate

will

be re

visi

ted

as p

art o

f the

sta

te re

venu

e fo

reca

st p

roce

ss

an

d w

ill in

clud

e an

upd

ated

est

imat

e of

FY

2019

sal

es a

nd p

rofit

s, a

s w

ell a

s th

e re

sidu

al tr

ansf

er fr

om F

Y 20

18.

(b)

Amou

nts

repo

rted

are

accr

ual-b

ased

est

imat

es (u

naud

ited

clos

ing)

.(c

) Th

e cu

rrent

yea

r fig

ures

on

this

cha

rt, in

clud

ing

grow

th p

erce

ntag

es, a

re n

ot a

n in

dica

tor o

f the

pro

babl

e ou

tcom

e fo

r the

fisc

al y

ear.

Lotte

ry re

venu

es c

an h

ave

dram

atic

sw

ings

up

and

dow

n m

onth

to m

onth

dep

endi

ng o

n th

e lo

tto ja

ckpo

ts, p

rize

expe

nse,

and

gam

e

re

late

d ad

min

istra

tive

expe

nses

.

- 3 -

Com

mon

wea

lth o

f Virg

inia

/Dep

artm

ent o

f Lot

tery

Sum

mar

y R

epor

t on

Lotte

ry C

olle

ctio

ns F

or th

e Fi

scal

Yea

rs 2

018

and

2019

(Dol

lars

in T

hous

ands

)

Nov

embe

rYe

ar-T

o-D

ate

% A

nnua

lAs

a %

Gro

wth

FY 2

019

of T

otal

%%

Req

uire

dR

even

ueEs

timat

eFu

ndFY

201

9FY

201

8C

hang

eFY

201

9FY

201

8C

hang

eB

y Es

timat

e

Mot

or F

uel T

axes

$9

08,7

0017

.93

$56,

727

$68,

770

(17.

5)$3

43,5

35$3

20,9

307.

06.

0

Prio

rity

Tran

spor

tatio

n Fu

nd (P

TF)

168,

655

3.33

5,91

33,

716

59.1

142,

169

138,

658

2.5

0.4

Mot

or V

ehic

le S

ales

and

Use

Tax

995,

000

19.6

379

,492

74,4

856.

743

2,96

641

6,88

43.

91.

1

Stat

e Sa

les

and

Use

Tax

1,

067,

800

21.0

887

,223

85,5

462.

040

0,38

337

6,89

86.

22.

3

Mot

or V

ehic

le L

icen

se F

ees

259,

200

5.12

19,7

9217

,567

12.7

112,

341

105,

413

6.6

0.1

Inte

rnat

iona

l Reg

istr

atio

n Pl

an

64,2

001.

264,

420

5,53

0(2

0.1)

20,5

1122

,474

(8.7

)(7

.2)

Rec

orda

tion

Tax

48,3

000.

953,

434

3,37

21.

819

,531

20,4

79(4

.6)

1.1

Inte

rest

Ear

ning

s4,

200

0.08

5864

(9.4

)2,

984

1,96

551

.9(5

2.7)

Mis

c. T

axes

, Fee

s, a

nd R

even

ues

17,2

000.

341,

692

1,43

517

.98,

328

7,22

915

.2(1

2.3)

To

tal S

tate

Tax

es a

nd F

ees

$3,5

33,2

5569

.72

$258

,751

$260

,485

(0.7

)$1

,482

,748

$1,4

10,9

305.

12.

2

# P

erce

ntag

e is

gre

ater

than

or e

qual

to 1

,000

%.

-

4 -

Com

mon

wea

lth o

f Virg

inia

/Dep

artm

ent o

f Acc

ount

sH

ighw

ay M

aint

enan

ce a

nd O

pera

ting

Fund

and

Tra

nspo

rtat

ion

Trus

t Fun

d R

even

ues

Sum

mar

y St

atem

ent o

f Sel

ecte

d R

even

ue E

stim

ates

& C

olle

ctio

ns F

or th

e Fi

scal

Yea

rs 2

018

and

2019

(Dol

lars

in T

hous

ands

)

Nov

embe

rYe

ar-T

o-D

ate

% A

nnua

lAs

a %

Gro

wth

FY 2

019

of T

otal

%%

Req

uire

dR

even

ueEs

timat

eFu

ndFY

201

9FY

201

8C

hang

eFY

201

9FY

201

8C

hang

eB

y Es

tH

IGH

WAY

MAI

NTE

NAN

CE

AND

OPE

RAT

ING

FU

ND

: M

otor

Fue

l Tax

es (I

nclu

des

Roa

d Ta

x)$7

26,1

0014

.33

$34,

604

$54,

185

(36.

1)$2

77,0

17$2

60,0

506.

55.

7 M

otor

Veh

icle

Sal

es a

nd U

se T

ax71

5,70

014

.12

57,1

8253

,689

6.5

313,

223

300,

470

4.2

0.7

Sta

te S

ales

and

Use

Tax

29

2,70

05.

7823

,707

23,7

95(0

.4)

111,

126

107,

181

3.7

0.1

Mot

or V

ehic

le L

icen

se F

ees

236,

700

4.67

18,0

5516

,016

12.7

101,

123

96,2

855.

0(0

.2)

Inte

rnat

iona

l Reg

istr

atio

n Pl

an

64,2

001.

264,

420

5,53

0(2

0.1)

20,5

1122

,474

(8.7

)(7

.2)

Mis

c. T

axes

, Fee

s, a

nd R

even

ues

17,2

000.

341,

692

1,43

517

.98,

328

7,22

915

.2(1

2.3)

To

tal S

tate

Tax

es a

nd F

ees

$2,0

52,6

0040

.50

$139

,660

$154

,650

(9.7

)$8

31,3

28$7

93,6

894.

71.

8

Oth

er R

even

ues:

Fe

dera

l Gra

nts

and

Con

trac

ts$0

0.00

$1,3

23$1

,761

(24.

9)$1

3,64

4$1

8,37

2(2

5.7)

(100

.0)

M

isce

llane

ous

Rev

enue

s 27

5,94

75.

442,

283

4,26

5(4

6.5)

271,

382

13,2

30#

(7.6

)

Tran

sfer

(to)

/ fr

om T

rans

port

atio

n

Tru

st F

und

181,

785

3.59

00

-0

19,8

32(1

00.0

)28

.1

Tota

l Hig

hway

Mai

nten

ance

and

O

pera

ting

Fund

$2

,510

,332

49.5

3$1

43,2

66$1

60,6

76(1

0.8)

$1,1

16,3

54$8

45,1

2332

.10.

5

TRAN

SPO

RTA

TIO

N T

RU

ST F

UN

D:

Mot

or F

uel T

axes

(In

clud

es A

viat

ion

& R

oad

Taxe

s)

$182

,600

3.60

$22,

123

$14,

585

51.7

$66,

518

$60,

880

9.3

7.3

PTF

Insu

ranc

e Pr

emiu

ms

Tax

168,

655

3.33

5,91

33,

716

59.1

142,

169

138,

658

2.5

0.4

Mot

or V

ehic

le S

ales

and

Use

Tax

(In

clud

es R

enta

l Tax

) 27

9,30

05.

5122

,310

20,7

967.

311

9,74

311

6,41

42.

92.

4 S

tate

Sal

es a

nd U

se T

ax77

5,10

015

.30

63,5

1661

,751

2.9

289,

257

269,

717

7.2

3.2

Mot

or V

ehic

le L

icen

se F

ees

22,5

000.

451,

737

1,55

112

.011

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9,12

822

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1 R

ecor

datio

n Ta

x 48

,300

0.95

3,43

43,

372

1.8

19,5

3120

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(4.6

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tere

st E

arni

ngs

4,20

00.

0858

64(9

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2,98

41,

965

51.9

(52.

7)

Tota

l Sta

te T

axes

and

Fee

s$1

,480

,655

29.2

2$1

19,0

91$1

05,8

3512

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51,4

20$6

17,2

415.

52.

8

Oth

er R

even

ues:

Fe

dera

l Gra

nts

and

Con

trac

ts$1

,044

,332

20.6

1$3

9,35

2$3

8,95

51.

0$7

36,1

94$6

82,5

297.

94.

2

Rec

eipt

s fr

om C

ities

/Cou

ntie

s 15

0,60

02.

9735

,461

22,4

3358

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108,

453

(17.

6)(3

8.8)

To

ll R

even

ues

(Incl

udes

Rou

te 2

8)

44,7

270.

883,

143

982

220.

116

,090

5,33

120

1.8

36.2

M

isce

llane

ous

Rev

enue

s 19

,229

0.38

11,9

1314

,509

(17.

9)26

7,16

724

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987.

3(9

4.6)

T

otal

Oth

er R

even

ues

$1,2

58,8

8824

.84

$89,

869

$76,

879

16.9

$1,1

08,8

63$8

20,8

8535

.1(2

3.1)

Tra

nsfe

r (to

) / fr

om H

ighw

ay

M

aint

enan

ce a

nd O

pera

ting

Fund

($

181,

785)

(3.5

9)$0

$0-

$0($

19,8

32)

100.

0(2

8.1)

T

otal

Tra

nspo

rtat

ion

Trus

t Fun

d

$2,5

57,7

5850

.47

$208

,960

$182

,714

14.4

$1,7

60,2

83$1

,418

,294

24.1

(12.

9)

TO

TAL

HIG

HW

AY M

AIN

TEN

ANC

E AN

D

O

PER

ATIN

G A

ND

TR

ANSP

OR

TATI

ON

TR

UST

FU

ND

$5,0

68,0

9010

0.00

$352

,226

$343

,390

2.6

$2,8

76,6

37$2

,263

,417

27.1

(6.7

)

# P

erce

ntag

e is

gre

ater

than

or e

qual

to 1

,000

%.

-

5 -

Nov

embe

rYe

ar-T

o-D

ate

Com

mon

wea

lth o

f Virg

inia

/Dep

artm

ent o

f Acc

ount

s H

ighw

ay M

aint

enan

ce a

nd O

pera

ting

Fund

and

Tra

nspo

rtat

ion

Trus

t Fun

d R

even

ues

Stat

emen

t of R

even

ue E

stim

ates

& C

olle

ctio

ns

For t

he F

isca

l Yea

rs 2

018

and

2019

(Dol

lars

in T

hous

ands

)

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2200

2400

2600

JUL

AU

GSE

PO

CT

NO

VD

EC

JAN

FEB

MA

RA

PRM

AY

JUN

$ MillionsTo

tal G

ener

al F

und

Rev

enue

s

FY 2

019

FY 2

018

FY 2

017

FY 2

017

Act

ual =

$18

,695

.1 M

illio

nFY

201

8 A

ctua

l = $

19,8

80.8

Mill

ion

FY 2

019

Est

imat

e =

$20,

173.

7 M

illio

n

-6 -

0

200

400

600

800

1000

1200

1400

1600

1800

JUL

AU

GSE

PO

CT

NO

VD

EC

JAN

FEB

MA

RA

PRM

AY

JUN

$ MillionsN

et In

divi

dual

Inco

me

Tax

FY 2

019

FY 2

018

FY 2

017

FY 2

017

Act

ual =

$13

,052

.9 M

illio

nFY

201

8 A

ctua

l = $

14,1

05.8

Mill

ion

FY 2

019

Est

imat

e =

$14,

183.

8 M

illio

n

-7 -

0

100

200

300

400

500

600 JU

LA

UG

SEP

OC

TN

OV

DE

CJA

NFE

BM

AR

APR

MA

YJU

N

$ MillionsIn

divi

dual

and

Fid

ucia

ry In

com

e Ta

x R

efun

ds

FY 2

019

FY 2

018

FY 2

017

FY 2

017

Act

ual =

$1,

861.

0 M

illio

nFY

201

8 A

ctua

l = $

1,90

7.6

Mill

ion

FY 2

019

Est

imat

e =

$2,0

54.7

Mill

ion

-8 -

DEP

ARTM

ENT

OF

THE

TREA

SUR

Y G

ener

al A

ccou

nt In

vest

men

t Por

tfolio

Mon

thly

Ave

rage

Bal

ance

s an

d Ra

tes

For t

he F

isca

l Yea

r 201

9(D

olla

rs in

Mill

ions

)

MO

NTH

PRIM

ARY

LIQ

UIDI

TYEX

TERN

AL M

ANAG

EMEN

TCO

MPO

SITE

TR

EASU

RY 1

YR.

EXTE

NDED

DUR

ATIO

NCO

NSTA

NT

MAT

URIT

Y1

Annu

aliz

edAv

g. B

alan

ceYi

eld

Avg.

Bal

ance

Tota

l Ret

urn

Avg.

Bal

ance

Rat

eYi

eld

Jul

y, 2

018

$5,8

81.1

2.12

%$1

,264

.10.

55%

$7,1

45.2

1.84

%2.

39%

Aug

ust

$5,2

25.6

2.12

%$1

,267

.06.

90%

$6,4

92.6

3.05

%2.

45%

Sep

tem

ber

$5,7

77.9

2.17

%$1

,268

.5-4

.34%

$7,0

46.4

1.00

%2.

56%

Oct

ober

$6,2

09.6

2.31

%$1

,264

.2-3

.78%

$7,4

73.8

1.28

%2.

65%

Nov

embe

r$6

,034

.22.

40%

$1,2

64.9

5.73

%$7

,299

.12.

98%

2.70

%

Dec

embe

r

Jan

uary

, 201

9

Feb

ruar

y

Mar

ch

Apr

il

May

Jun

e

Year

-to-D

ate

Aver

age

$5,8

25.7

2.23

%$1

,265

.71.

02%

$7,0

91.4

2.01

%2.

55%

▪ Per

form

ance

on

the

exte

nded

dur

atio

n po

rtion

of t

he G

ener

al A

ccou

nt is

repo

rted

on a

n an

nual

ized

tota

l ret

urn

basi

s. T

otal

retu

rn in

clud

es u

nrea

lized

gai

ns a

nd lo

sses

, whi

ch in

the

shor

t ter

m c

an m

ake

retu

rns

mor

e vo

latil

e. O

ver a

n e

xten

ded

time

perio

d th

e flu

ctua

tions

ave

rage

out

and

tota

l ret

urn

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.

-10-

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