Latest Monthly Finance Bulletin Shows State Revenues On Track
June 22, 2017
The latest revenue information is available from the Department of Finance, and the numbers are closely tracking budget forecasts. General Fund monthly revenues are tracking $160 million (2.1 percent) above forecast, and year-to-date revenue are $197 million (0.2 percent) above forecast. Sales and use tax receipts and corporation taxes are both up for the month of May, while income tax returns are $53 million (1.2 percent) lower than expected which unfortunately means the Mental Health Services Fund did not get as much money as anticipated.
It is important to note that this is the first monthly report comparing actual revenues to the May Revision projections. And as part of the May Revision, the Department of Finance adjusted budgeted revenue estimates downward.
The other data provided in the report bears positive news to the state’s overall economic health. California’s unemployment rate continued to drop, falling to 4.7 percent; job growth grew substantially, especially in the government sector; and, building permits reached the highest levels since March 2007.
This report comes on the heels of the state budget compromise (see the latest CSAC Budget Action Bulletin). The Governor has yet to sign the 2017-18 State Budget and accompanying trailer bills, but action is expected soon.