According to the latest cash update released by the State Controller, receipts for the month of October indicate that the state's balance is $232.3 million, or 4.6 percent, above estimates presented in the State budget. So it’s not all bad news after the LAO dropped a bombshell by projecting the state’s deficit at $25.4 billion. The controller’s figures indicate that “Corporate taxes were up $26.8 million (8.8 percent), personal income taxes came in $63.8 million above (1.8 percent) estimates, and Sales and use tax revenues were $108.7 million above (13.1 percent) estimates.” Chiang stated the following of the receipts:
“The record 100 day budget stalemate pushed us past the point of having enough cash on hand to pay more than $8 billion in outstanding bills that came due when the budget was signed. Thankfully, the State received the proceeds from an interim cash flow borrowing that allowed us to start paying the $5.5 billion in payments delayed by the budget for tax refunds, community colleges and school districts.”
In comparison to October of last year, general fund revenues are up 9.0 percent, as personal income tax is up 22.2 percent.
October’s financial statement can be found here. Summary analysis can be found here.
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