California reaped more income tax revenue in April than expected, Controller John Chiang reported Tuesday.
“Through the end of April, California received an unexpected $1.4 billion in personal income taxes. As a result, general fund revenues are $738 million above the governor’s January budget estimates,” Chiang said in a statement.
“While this is very welcome news, these numbers should not lure us into a false sense of security,” he added. “Sagging retail sales, a weakening real estate market, growing unemployment, and rising energy prices all point to an economy facing significant challenges. Importantly, the additional tax revenues received last month reflect the 2007 economy. Next year’s revenues will reflect this current year’s economic climate.”
Chiang will release his office’s regular detailed summary of April cash receipts and disbursements today.
Gov. Arnold Schwarzenegger will announce his “May revise” budget Wednesday, which will incorporate the latest revenue reports as well as updated economic projections for the coming year.