SAN FRANCISCO — California Controller John Chiang said February state revenues came in almost on track with estimates in Gov. Jerry Brown's proposed budget, as the economy shows signs of a recovery.
"February's revenues came within a percentage point of estimates," Chiang said in a statement Monday. "Healthy revenues, along with recovering home prices, a steep drop in foreclosures, and increased car sales are harbingers of a California economy that is starting to warm-up."
The revenues hit Brown's target despite personal income tax receipts falling $441 million, or 18.6%, below the February projection. This was mostly due to the hand out of large tax refunds in February that had been expected to go out in January, according to Chiang.
The California Department of Finance said last month that state revenues rose $5 billion in January above estimates in the governor's proposed budget, mainly due to a big increase in personal income tax receipts.
The finance department said the passage of Proposition 30, which raises income taxes on the wealthy, caused people to pay a larger share in January rather than wait until April, as forecast in the budget.
Chiang said corporate tax collections in February rose $26 million, or 22.3%, above the forecast.
California still has a cash deficit of $16.2 billion that has been covered by $6.2 billion of temporary loans from special funds and $10 billion of external borrowing, the controller said.