SAN FRANCISCO - California's revenues for August came in below estimates, according to State Controller John Chiang's monthly report covering the state's cash balance, receipts and disbursements.
The $6.7 billion of revenue was $370.1 million, or 5.3%, less than projected in the state Budget Act. Most of the shortfall reflected a one-time transfer of $343.3 million in sales tax revenues from the state's general fund to local governments, according to the controller.
"If not for a one-time transfer of sales tax revenues to local governments, August revenues closely tracked budget projections," said Chiang. "As Californians enjoy this period of economic stability, we can actively work to sustain it by continuing to pay down debt accumulated during the Great Recession, undo the accounting gimmicks sprinkled throughout past budgets, and get serious about addressing the state's unfunded retiree health care liability."
Income tax collections for the month came in above estimates by $43.4 million, or 1.1%, at $3.9 billion. After income tax, retail sales and use taxes were the second largest revenue source at $2.3 billion.
Corporate taxes were originally expected to be negative for the month as refunds were project to outpace tax collections. However, corporate tax revenues totaled $126.1 million for month.
On the spending side, disbursements in August were $464 million, or 5.9%, below projections. The cost of state operations was higher than estimates, and spending on schools, disability and other social services, and health care were all under projections.
At the end of August, California had an outstanding loan balance of $8.5 billion because of the typical timing of shortfall of revenues versus disbursements at this time of year. The amount is less than the $10.1 billion forecast by the Department of Finance.
