Virginia finances improved in 2024

Virginia made progress in 2024, improving its financial condition. It ended the year with $21.1 billion more than needed to pay its bills. That means the commonwealth had a Taxpayer Surplus™ of $6,800 and earned a “B” grade from Truth in Accounting.

This analysis is part of Truth in Accounting’s annual Financial State of the States report, which combs through lengthy government financial reports to uncover the true fiscal health of each state.

The full analysis found that 25 states did not have enough money to pay their bills at the end of fiscal year 2024. Every state, except Vermont, has a balanced budget requirement. Yet the states needed more than $765 billion to cover their expenses at the end of fiscal year 2024. This means that to balance their budgets—as is required by law in 49 states—elected officials have shifted current costs onto future taxpayers.

Virginia has received substantial temporary federal aid since 2020 in response to the COVID-19 crisis. This additional funding contributed to improvements in the commonwealth’s financial condition and increased its money available to pay bills. However, as this aid diminishes and national budget tightening continues, future funding may return to more typical levels. This analysis models a return to 2019 federal grants and contributions, increased only by inflation. If so, Virginia could see a $9.2 billion reduction in federal funding, representing around 12 percent of projected expenses for the commonwealth’s primary government. This may present challenges for maintaining services and balancing the budget.

Truth in Accounting’s report provides a roadmap for states to improve fiscal transparency, empowering citizens with the information needed to understand how public money is managed. You can explore the full report and see how Virginia compares to others at truthinaccounting.org.