CA Controller’s May Cash Report Shows Receipts $69.1 Million Above Expectations
SACRAMENTO—Less than a month after the Governor revised his proposed 2015-16 state budget, May receipts for the state’s General Fund exceeded the Governor’s new projections by $69.1 million, according to State Controller Betty T. Yee’s monthly report of California’s cash balance, receipts, and disbursements published today.
At the same time, May receipts were $317.9 million less than anticipated when the budget for the 2014-15 fiscal year was enacted a year ago. All told, though, General Fund receipts through May 31 outstripped projections in last year’s Budget Act by $5.8 billion, or 6.2 percent. And receipts have exceeded last year’s actual receipts by $10.7 billion, or 12 percent, reflecting a stronger California economy.
May retail sales and use taxes surpassed estimates in the May budget revision by $29.8 million. The state’s other two major taxes were both lower than anticipated—the personal income tax by $3.7 million and the corporation tax by $20.2 million. Total General Fund receipts were $7.6 billion, almost 1 percent higher than projected in the May revision.
Compared to the 2014-15 budget, May personal income tax came in $333.7 million short. About $85 million of this amount resulted from lower withholdings from workers’ paychecks, with another $19 million attributable to higher-than-expected income tax refunds.
Retail sales and use taxes fell short by $88.7 million and corporation taxes by $4.5 million. In total, the top three sources of revenue came in $426.9 million less than expected in the budget enacted a year ago. But May receipts were an anomaly in an otherwise strong year, with total General Fund receipts at $99.6 billion, compared to the $93.7 billion anticipated when the 2014-15 budget was approved.
The General Fund, the source of most state spending, ended the month with outstanding loans of $6.1 billion, which is $7.8 billion less than anticipated in last year’s budget. The state’s sources of internal funds that can be borrowed to cover short-term cash shortfalls ended the month at $32.2 billion, about $4.3 billion higher than projections. This reflects the strength of special funds which, like the General Fund, have done better than expected.
For more details on today’s report, read the financial statement.