State Revenues Continue to Surge Ahead
Oct. 18, 2018
Preliminary General Fund agency cash for the first three months of the fiscal year reached a new height of $28.542 billion which is $1.032 billion higher than 2018-19 Budget Act estimates. Latest figures for the month of September show most of the big revenue sources surpassing budget estimates, except for sales and use tax which fell $31 million short.
Fiscal year-to-date, sales and use taxes are $61 million (or 1 percent) below forecast which is important for realignment, IHSS, transportation, and a host of other county-run programs that rely on sales tax revenues. Income tax, on the other hand, continues to beat budget expectations for the seventh month in a row. In September, income tax revenues surpassed budget estimates by $260 million (or 3.2 percent), which translates to an extra $5 million in the Mental Health Services Fund. Fiscal year-to-date, income taxes are $990 (or 5.3 percent) above forecast. Additionally, corporation taxes are performing $66 million (or 3.8 percent) above forecast thus far in the fiscal year.
In addition to revenue figures, other economic indicators are showing strength. Most notably, California’s unemployment rate remained at a record low of 4.2 percent for the fifth straight month in August. And, in August alone, California added 44,800 jobs – more than 20 percent of all U.S. jobs added in the month.