A Bit of Good Fiscal News

California had a better-than-expected month in January, according to monthly cash report released Wednesday by Controller John Chiang.

January revenue came in at $1.28 billion, or 18.6% ahead of estimates in Gov. Arnold Schwarzenegger’s most recent budget,.

“The positive receipts are welcome news, but the state cannot be lulled into a false sense of security,” Chiang said in a news release.

“Our cash position falls below safe levels this spring, and goes into the red this summer,” he said. “Our chronic budget shortfalls require credible and sustainable fixes in order to protect taxpayers, local governments, and state-funded programs.”

California began the fiscal year in July with an $11.9 billion cash deficit in the general fund, which grew to $24.1 billion by Jan. 31, Chiang said. Those deficits are being covered with a combination of $15.3 billion of internal borrowing from special funds and $8.8 billion in short-term revenue anticipation notes.

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