Pleasanton Weekly

News - March 14, 2014

Income tax receipts exceed budget estimates by 46%

State's General Fund cash deficit totals $14.1 billion, down from last year

by Jeb Bing

State Controller John Chiang has released his monthly report covering California's cash balance showing that revenues for the month of February totaled $5.6 billion, surpassing estimates in the 2014-15 governor's budget by $968.9 million, or 20.9%.

"Driven by strong retail sales and personal income tax withholdings, February receipts poured in at nearly $1 billion above projections," Chiang said.

"How we conserve and invest during the upswings of California's notorious boom-or-bust revenue cycles will determine how critical programs, such as public safety and education, will weather the next economic dip," he added. "With fiscal discipline and a focus on slashing debt, we can make California more recession-resistant and prosperity a more enduring hallmark of our state."

Income tax receipts exceeded the governor's expectations by $721.7 million, or 45.7%. Corporate tax receipts came in ahead of estimates by $87.4 million, or 236.2%. Sales and use taxes were $113.7 million, or 3.9%, above the expectations in the governor's 2014-15 proposed budget.

The state ended the month with a General Fund cash deficit of $14.1 billion, which was covered with internal and external borrowing. That figure was down from last year, when the state faced a cash deficit of $16.2 billion at the end of February.

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