September 2013 Cash Report Summary Analysis
Published September 10, 2013
Bottom Line: What the Numbers Mean
California State revenues were close to estimates in August, but impending federal decisions relating to the Middle East and the Federal Reserve bond buying program raise uncertainty about future months. Total revenues last month were only about $27 million, or 0.4%, below estimates contained in the 2013-14 Budget Act. Personal income taxes and sales taxes missed projections, but were offset by better-than-anticipated numbers in several other categories. Read more and see detailed receipts and disbursements.
Outlook Strong for Fiscal Year 2013-14 Receipts
What a difference a year makes. With the economy rising and Proposition 30 approved, the State's General Fund condition is better than it has been in recent memory. Governor Jerry Brown expects the State’s operating budget — inflows minus outflows — to balance in the current year. In fact, his Department of Finance estimates the State will net $3 billion more in receipts than disbursements for the year. Read more.
Can Insight Come From Our Recent, Painful Past?
With the U.S. economy recovering, California seems on the verge of renewed prosperity. After years of economic stress, more Californians have jobs. Incomes are rising. Retail sales are expanding. The housing market continues to improve. State policy makers can turn their attention to other, more pressing matters. Before the memory of the recession fades, however, now might be a good time to consider how State fiscal policy might be calibrated to mitigate the effects of the next cyclical downturn. Read more.
California Economic Snapshot
See recent statistics regarding California new car registrations, the median home price, single-family home sales and employment. Read more.