Governor Bob McDonnell announced Virginia's latest budget surplus Monday. Thanks to savings and new revenues, the state ends fiscal year 2013 more than half a billion dollars in the black.
Virginia's surplus in fiscal year 2013 is $585 million - the largest single surplus since 2005.
In his speech before the General Assembly's money committees in Richmond, McDonnell said his administration helped create close to $2 billion in surpluses since 2010, the largest of any other governor.
A chunk of the surplus will go into the state's rainy day fund, bringing the balance close to $1 billion by 2016. McDonnell says that should help prepare Virginia for the delayed effects of federal sequestration and future budget challenges.
"Now, we've had our bumps a couple of these years. But the bottom line is unemployment is down, the rainy day fund is up, core functions of government are being well-funded, general fund spending is flat, and Virginia's economy is growing," McDonnell said.
McDonnell also touted low government spending during his tenure. Subtracting rainy day fund savings, general fund spending has only increased three-tenths of a percent since 2007, less than the rates of inflation and population growth.
McDonnell will make additional recommendations in December as to where the remaining surplus should be allocated. He mentioned funding for the Virginia Retirement System, funding for K-12 reforms, and - in the upcoming biennial budget - McDonnell says he remains focused on workforce development job creation and infrastructure.