Controller: Mere Weeks to More IOUs
State Controller John Chiang today released his monthly report of state General Fund receipts and disbursements. For the month of July, revenues fell below the Governor’s estimates by 1.9% (-$91 million). The Controller took the opportunity to impress upon the Governor and legislators the importance of quickly enacting a realistic budget.
Controller Chiang pointed out that, while the state can maintain “safe” cash levels into October by deferring a major payment to schools, he will have to begin issuing IOUs by late August or early September to manage cash. However, if a realistic budget passes, he will be able to sell the usual Revenue Anticipation Notes to sustain cash reserves through the fiscal year.
Compared to July of last year, revenues are up 2.2% (+$99 million); importantly for counties, the sales and use tax specifically is up 4.0% .
Other numbers from the report: – New auto registrations from June 2009 through May 2010 were up slightly (+0.5%) from the previous year. – The median single-family home price in June 2010 was up to $270,000 (+9.75%) from the previous year, though sales declined slightly (-0.5%). – The number of foreclosures initiated in the 2nd Quarter of 2010 was down by almost half (43.8%) from the same quarter of 2009. – Newly permitted residential units were up 18.0% in June 2010 compared to the same month last year.