State Revenues, Jobs and Building Activity All Up
Sept. 20, 2018
After a slight dip in July, state revenues are back on track, beating budget estimates by $1.047 billion for the month of August. Additionally, California enjoys impressive job growth, accounting for almost a third of the nation’s job growth in July. These factors, in addition to others described below, show that California’s economy remains on strong footing.
The dip in July revenues was largely due to a delay in final sales tax payments for second quarter sales. August mostly closed that gap, coming in $450 million, or 21 percent above budget expectations. Fiscal year-to-date, that brings sales tax $30 million, or 0.7 percent below budget expectations.
Personal income tax exceeded budget expectations for the sixth month in a row, ending with a strong return of $5.95 billion for August which is $484 million, or 8.9 percent above the estimation. As a result, an extra $9 million was transferred to the Mental Health Services Fund, bringing the total for August up to $107 million.
As state revenues surge ahead, jobs are too. In July, the state experienced an increase of 46,700 jobs across all sectors of employment. This performance helped keep California’s unemployment rate at a record low of 4.2 percent for the fourth straight month.
Building activity is also on the rise. This past July, California housing units authorized by building permits were up 0.4 percent from the previous month and 11.4 percent from the previous year. Although, home sales continue to decline for the third straight month in a row.
This data was reported in the California Department of Finance’s Monthly Finance Bulletin. Please feel free to reach out to CSAC legislative staff Dorothy Johnson or Tracy Sullivan with any questions.