It’s official: Va. back in the black

Published August 18, 2010 4:00am ET



Virginia Gov. Bob McDonnell announced Thursday morning that the state finished the last fiscal year with a budget surplus of more than $400 million — nearly double the amount anticipated in July.

Much of the money is already obligated; $82.2 million will go toward a one-time bonus for state employees, $36.4 million will go to the Water Quality Improvement fund, and at least $32.7 million will be set aside for transportation.

The state collected $228 million more than expected, the bulk of which came from individual withholding payments and corporate tax receipts, and saved nearly $175 million.

Of the $175 million in savings, $103.6 million will go toward mandatory re-appropriations, leaving a discretionary general fund balance of $71.2 million.

The governor said he will decide how to use any of the undesignated balances later this year.