SAN FRANCISCO - California revenues came in below projections for May, at $6.7 billion, according to State Controller John Chiang's monthly report.
Revenues missed estimates in Gov. Jerry Brown's January proposed budget by $389.1 million, or 5.5%.
Revenues still exceed expectations for the year-to-date by $1.8 billion, or 2.1%.
"While this is the first time in six months that revenues have fallen short, the overall budgetary health remains stable and there is no threat to the state's ability to pay its bills on time and in full," Chiang said in a statement. "As lawmakers finalize their spending decisions in the coming days, my office urges fiscal restraint with an eye toward slashing the billions of dollars in debt accrued during the Great Recession."
Income tax collections for the month came in $254.2 million, or 7.4% below estimates. Corporate taxes were short by $177.6 million or 99.8%. Sales taxes also came in below projections by $98.6 million, or 3.1%.
At the end of May, the state's cash reserves exceed the governor's January projection by $4.9 billion. This includes $3.5 billion in greater than anticipated internal borrowable resources and a cash deficit that is lower than projections by $1.4 billion.
That cash deficit, now $8.5 billion, is being covered by internal and external borrowing.
