State Revenues Continue to Beat Estimates
October 12, 2017
Early this week, the State Controller published a Statement of General Fund Cash Receipts and Disbursements for the period July 1, 2017 through September 30, 2017 and the figures provide good news. Compared to cash flow estimates prepared by Department of Finance (DOF) for the 2017-18 Budget Act, thus far in the fiscal year, the State Controller is showing an extra $583.4 million of unanticipated revenue. In more good news, compared to this time last year, revenues are up by $1.36 billion.
The uptick in cash flow is due in large part to all of the “big three” tax revenue sources beating budget expectations. As the State Controller reports, fiscal year-to-date personal income tax receipts are $216.2 million above budget estimates; corporation taxes are $220 million above budget estimates; and, sales taxes are $150.3 million above budget estimates.
For the month of September, income taxes and corporation taxes continue to outpace budget projections; however, sales tax revenues have fallen behind. Not only are they $1.6 million below budget estimates for September, but they are down 5.1 percent from what was reported in September 2016.
The Controller did not provide an explanation for the dip in sales tax revenues, but the anticipated DOF September revenue report, expected sometime next week, may provide further clarification. A link to the report will be provided in the Bulletin when it becomes available.