State Revenues Remain Positive as January Budget Looms
December 14, 2017
Budget season is in full swing on the state level with less than a month before the Governor is due to release his proposed 2018-19 Budget. According to the State Controller’s Office most recent cash report, within the first five months of the current fiscal year, total revenues of $40.96 billion are outpacing budget projections by 2.5 percent, driven largely by unexpected gains in retail sales.
Department of Finance has not yet released revenue figures for the month of November, but the Controller’s Office reports that November revenues exceeded expectations overall, despite a lag in personal income taxes which were down by nearly $200 million, or 4 percent.
Sales tax and corporation tax, however, came in strong for the month and made up the difference. Sales tax receipts in November surpassed budget estimates by $538.1 million, while corporation tax receipts beat estimates by $89.2 million.
Using budget estimates as a baseline, revenues thus far in the fiscal year have been healthy, indicating strength in the current economy. As such, state budget leaders are currently posturing to get their priorities included in the January Budget.