RICHMOND, Va. – While many businesses are still reeling from the pandemic, Virginia’s budget surplus continues to rise.

Virginia Secretary of Finance Aubrey Lane said Wednesday that state revenues are running well ahead of projections. Revenues were about $3.3 billion ahead of the previous fiscal year at the end of last month.

Layne told members of the House Appropriations Committee the budget surplus could approach $2 billion.

The optimistic budget forecast comes as Virginia’s labor force saw an increase in the total number of people employed during the month of May. Virginia Employment Commission figures show the unemployment rate dropping slightly to 4.5 percent in May. That is 4% lower than May of 2020.

Virginia’s seasonally adjusted unemployment rate remains below the national average of 5.8 percent. The number of employed residents rose by 12,103 to 4,040,585. Unemployment decreased by 8,061.

Virginia also posted year-to-year job growth of 7 percent.