RICHMOND, Va. (AP) - Virginia’s lagging revenues could delay a 3 percent pay raise scheduled for state employees and college faculty.
The Richmond Times-Dispatch (https://bit.ly/1WDx3sD ) reports that the pay raises could be affected if the state’s revenues don’t catch up to projections by the end of June.
Secretary of Finance Richard D. “Ric” Brown said during a House Appropriations Committee Monday that revenue collections through April were trailing projections by 1.9 percent. The collections had also declined by 6.7 percent from the previous April.
The pay raises are scheduled to take effect Dec. 1. Brown said the delay wouldn’t necessarily prevent employees from eventually getting the raises, but they are not guaranteed.
The state would have to reforecast revenues for the two-year budget that takes effect July 1 if collections finish the fiscal year behind $169 million. Brown said the pay raises could be put on hold if the state has to do a reforecast.
The last time the state performed reforecasts was in 2014.
Brown added that he hopes collection of income and sales taxes will recover in May and June to close the gap and avoid the reforecasts.
Revenue collections increased 23 percent in the first nine days of May.
“You have some strength in May,” Brown said. “The question is, how long does it last?”
Information from: Richmond Times-Dispatch, https://www.timesdispatch.com
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