Virginia Revenue Outlook for Summer 2026: Stable
July 27, 2026
According to the state revenue outlook report for summer 2026 prepared by Multistate, Virginia's short-term fiscal outlook remains stable. Virginia's FY26 rainy day fund balance as a percentage of expenditures is 13%.
Many states continue to report positive revenue positions heading into the end of FY 2026. However, the gap between surplus and deficit states is widening, and most of the high-priority tax policy states are showing deteriorating outlooks heading into FY 2027 budget cycles. Additionally, even those states which are still reporting stable revenue conditions are beginning to spend down their COVID-era reserves at rapid levels. Currently, 27 states are rated by MultiState as facing a positive short term revenue outlook, 13 states are rated as conditional, and 10 states are rated as challenging.
This points to a declining trend for states: last summer, Multistate rated 30 states as positive, 12 states as conditional, and eight states as challenging.
See the full national outlook in this PDF from Multistate for more information.