Virginia posts $21B surplus in new report

Virginia ended fiscal year 2024 with more money than it needed to cover its bills, placing it in the top quarter of states reviewed in a new financial report.

Truth in Accounting, a nonprofit that examines audited state financial statements, ranked Virginia 12th overall and gave it a “B” grade. The group reported that the commonwealth had $79.1 billion available to pay $58 billion in bills, leaving a $21.1 billion surplus. That equals about $6,800 per taxpayer.

Virginia was one of 25 states with enough money to meet its obligations. The ranking placed it ahead of North Carolina, which was 17th, and West Virginia, which was 15th. Tennessee ranked in the top five. New Jersey came in last with a $44,500 shortfall per taxpayer.

The report said Virginia’s revenues exceeded expenses by $9.4 billion in fiscal year 2024. That was boosted by a $3.8 billion increase in income tax revenues and a 31% rise in operating grants and contributions. Those gains helped the commonwealth improve its financial position for the third year in a row.

At the same time, the report noted that Virginia has relied on substantial temporary federal aid since 2020. That aid helped bolster the commonwealth’s finances but may not continue.

The report cautioned that Virginia could lose about $9.2 billion in federal funding, which represents roughly 12% of projected expenses, if COVID-era aid returns to pre-2020 levels, and noting that could make it harder to maintain services and balance the budget.

The report said Virginia’s job growth cooled to 1.8% in 2024, down from 2.9% the year before. At the same time, real personal income rose about 3%, showing the economy still had some resilience.

For Virginia, the 2025 report highlighted a solid surplus, with future challenges still to be determined.