California Controller John Chiang said January revenues came in $4.3 billion above estimates in the governor’s proposed budget.
“Last month’s revenues were by far the highest that California has seen in any January for the past decade,” Chiang said in a statement. “Along with increased auto sales, rising home values, and more construction, it signals that California may be entering an era where we can govern outside of crisis.”
The controller said the state should still muster fiscal discipline given California’s history of boom and bust economic cycles.
Personal income taxes rose 55%, or $4.8 billion, above budget estimates in January, helping drive the revenue growth.
Corporate taxes increased 45%, or $11.4 million, above monthly projections.
Sales taxes dropped 27%, or $582 million, below Gov. Jerry Brown’s January estimates.
As of the end of January, California had a cash deficit of $15.7 billion covered by internal and external borrowing, according to Chiang.