SAN FRANCISCO — California ended the first quarter of the fiscal year strong with total revenues coming in above estimates, according to State Controller John Chiang.
For the month of September, revenues totaled $9.8 billion-beating estimates by 7.4%.
"Driven by an upswing in consumer activity and job growth, September revenues beat projections by more than $670 million," Chiang said in a statement Oct. 10. "If we remain disciplined in paying down the State's debt, building a healthy reserve, and tackling the $64 billion unfunded liability associated with providing health benefits to our retired public workforce, Californians will have longer to enjoy this newfound prosperity."
Income tax collections during the third month of fiscal 2015 totaled $6.1 billion-up $350.6 million from estimates. Retail sales and use taxes totaled $2.1 billion, beating estimates by $228.6 million.
Corporation tax revenues totaled $1.1 billion, $173.7 million above estimates.
California's nonfarm payrolls expanded by 44,200 in August, which exceeded the number of jobs created in any other state.
"Despite wage growth stagnating at about 2% per year, expanding employment is fueling a solid upswing in personal income tax revenues," the controller's office said.
The office said revenue performance for the first quarter of the year is encouraging, with total receipts outpacing forecasts by $645 million.
As of Sept. 30, the state's general fund accumulated outstanding loans of $13.4 billion, which was down $2.4 billion from what the state expected to need by the end of its first fiscal quarter.
This total was financed by $10.6 billion of borrowing from internal state funds and $2.8 billion of borrowing from banks and other outside investors.
"California cannot take its economic and fiscal progress for granted, but September's results are certainly welcome," the controller's office said. "The state should continue to take this window of improving revenue flows to address its long-term structural financial issues."
