California revenues for May miss forecast by nearly $800 million

California revenues came in $784.2 million under expectations for May, according to the state controller’s monthly cash report.

Controller Betty Yee’s report came out just before the Legislature’s budget conference committee was set to meet Friday night.

Brown and Democratic legislative leaders announced a budget agreement had been reached Friday morning, but provided few details about what that agreement involved.

The legislature has to approve a final budget by June 15.

Both corporation taxes and sales taxes for May were substantially lower than anticipated in the governor’s May revise budget proposal, but personal income taxes came in higher than expected.

“With one month left in the 2017-18 fiscal year that began in July, total revenues of $115.38 billion are $784.2 million less than estimates in the May budget revision, but $4.52 billion higher than expected in the enacted budget,” according to Yee’s report.

That would carve almost $1 billion out of the $6 billion surplus that the governor projected.

Total fiscal year-to-date revenues are $10.1 billion higher than for the same period in fiscal year 2016-17, according to Yee’s report.

Corporation taxes of $570.6 million were 12.2% less than forecast for May in last month’s budget revisions. Sales tax receipts of $2.43 billion for May were 31.4% less than expected.

For May, personal income tax receipts of $4.82 billion were $497.4 million, or 11.5%, higher than estimated in the governor’s May budget proposal.

Unused borrowable resources through May exceeded amended budget projections by 13.4%. Outstanding loans of $5.83 billion were $1.17 billion less than the governor’s May Revision expected the state would need by the end of May. The loans were financed entirely by borrowing from internal state funds.