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Controller Releases July Cash Figures

SACRAMENTO – State Controller John Chiang today released his monthly report detailing California’s cash balance, receipts and disbursements in July 2009.

“A $12 billion decline in annual revenue, combined with Capitol gridlock over how to respond to this economic freefall, forced the State to rely on IOUs for the first time in 17 years,” said Chiang. “Those IOUs allowed the State to preserve just enough cash to get through the month, but that came at great expense to California taxpayers, families and businesses.

“While we have a new budget, that does not mean our Treasury instantly fills with cash. My office has been working around the clock, in partnership with the Department of Finance and the State Treasurer, to determine exactly how the new budget remedies the recent cash crisis.

“I do not want to issue another single IOU, or delay the redemption of existing IOUs for one more day than is absolutely necessary,” said Chiang.

Preliminary results of the Controller’s cash analysis of the budget will be available this week.

The State started the fiscal year with an $11.9 billion cash deficit, which grew to $16.5 billion on July 31, 2009. From July 2 through 31, the State issued $1.493 billion worth of registered warrants, commonly known as IOUs.

Personal income taxes in July were $335 million below (-11.5%) the same month of last year, while sales taxes were up $185 million (20.8%). Corporate taxes were up $18.9 million (9.1%) from July 2008.

July 2009’s financial statement and the summary analysis, along with more information on the State’s cash crisis can be found can be found on the Controller’s Web site at www.sco.ca.gov.

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