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.
This data was reported in the California Department of Finance’s Monthly Finance Bulletin. Please contact CSAC legislative staff Dorothy Johnson or Tracy Sullivan with any questions.