LOS ANGELES — The California controller's monthly cash
State Controller Betty Yee's monthly report of California's cash balance, receipts, and disbursements, released March 10, beat the governor's estimates by 18.3%, which Yee said reflects an overall strengthening of the economy.
The increase in actual revenue puts general fund receipts for the entire fiscal year at $68.1 billion, which is 1.4% higher than estimates in the governor's budget proposal. All three of the state's main taxes, income, sales and corporation are 1% to 2% higher than projected for the 2014-15 fiscal year.
The February surge came from increases in personal income tax coming in at $2.6 billion, 26.3% higher than the governor's January estimates, and retail sales and use taxes of $3.5 billion, 15.8% higher than projected, according to the controller's office. Other revenue sources also surpassed expectations, including the alcoholic beverage excise tax, which came in at $55.3 million, 133.9% over the estimate.
The state ended the month with a general fund cash deficit for the 2014-15 fiscal year of $11.9 billion, 5.3% smaller than projected. This deficit was covered by $9.1 billion of internal borrowing and $2.8 billion of external borrowing. The Controller pursues external borrowing when cash available from special funds is not enough to meet General Fund obligations. The controller may ask the treasurer to sell short-term Revenue Anticipation Notes that are repaid by the end of the fiscal year.
