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Income tax receipts for February exceed state's budget estimates by 46%

General Fund cash deficit totals $14.1 billion, down from $16.2 billion at end of February 2012

State Controller John Chiang released his monthly report Monday covering California's cash balance showing that revenues for the month of February totaled $5.6 billion, surpassing estimates in the 2014-15 governor's budget by $968.9 million, or 20.9%.

Receipts and disbursements in February 2014. Revenues for the month totaled $5.6 billion, surpassing estimates in the 2014-15 Governor Brown's Budget by $968.9 million, or 20.9%.

"Driven by strong retail sales and personal income tax withholdings, February receipts poured in at nearly $1 billion above projections," said Chiang.

"How we conserve and invest during the upswings of California's notorious boom-or-bust revenue cycles will determine how critical programs, such as public safety and education, will weather the next economic dip," he added. "With fiscal discipline and a focus on slashing debt, we can make California more recession-resistant and prosperity a more enduring hallmark of our state."

Income tax receipts exceeded the governor's expectations by $721.7 million, or 45.7%. Corporate tax receipts came in ahead of estimates by $87.4 million, or 236.2%. Sales and use taxes were $113.7 million above, or 3.9%, the expectations in the governor's 2014-15 proposed budget.

The state ended the month with a General Fund cash deficit of $14.1 billion, which was covered with both internal and external borrowing. That figure was down from last year, when the state faced a cash deficit of $16.2 billion at the end of February.

Comments

Like this comment
Posted by William Tell
a resident of Another Pleasanton neighborhood
on Mar 11, 2014 at 9:19 am

Chiang went on to say, "Now we could use this surplus to augment K-12 education, or lower existing costs for the middle-class native Californians like state park fees and state college tuition; or we could even use it to pay down our existing debt. Instead, our one-party Democrat legislature is working round the clock to figure out how to transfer this to illegal immigrants, government employee unions and non-working welfare recipients - and outright waste as much as they can so that we can continue to raise taxes and fees."


Like this comment
Posted by Dude
a resident of Bridle Creek
on Mar 12, 2014 at 10:19 am

William Tell is telling it like it is.


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