California Revenue Update
Actual Revenue Below Estimates for October, Fiscal Year
Revenues for the month of October fell behind estimates by almost 5% compared to the adopted 2016-17 Budget with biggest shortfalls in the personal income taxes and sales and use taxes. Preliminary General Fund cash for October was $381 million below the forecasted $8.1 billion. Year-to-date revenues are approximately 1.8% below estimates. The full report from the Department of Finance shows mixed news for other statewide economic indicators such as unemployment, home sales, and construction activity.
Sales and use taxes showed another below-projection month with year to date revenues falling $361 million below the forecast and October showing a dramatic drop of over 13% in this last payment period for third quarter taxable sales.