LOS ANGELES — California revenues of $8.39 billion for May beat expectations in the revised budget proposal Gov. Jerry Brown released last month by $133.4 million, according to State Controller Betty Yee's monthly cash report.
Total tax collections for the year, however, are below expectations laid out when last year’s budget was passed.
The boost in May was provided by retail sales and use tax receipts and corporation tax receipts, which both outperformed revenue expectations in the governor’s May budget proposal.
Retail sales and use tax receipts of $3.41 billion for May were $69.5 million more than anticipated, while corporation tax receipts of $529.5 million exceeded expectations by $61.2 million. Personal income taxes for the month of $4.12 billion came in $35.2 million below expectations.
For the current fiscal year, California has collected total personal income tax receipts of $71.8 billion, $265.7 million less than anticipated in the 2016-17 Budget Act. Fiscal year-to-date revenues for the other two major categories also missed projections outlined in last year’s budget. Sales tax receipts came in $992.0 million lower than expected for the year, while corporation tax receipts were $334.4 million below expectations.
The state ended May with unused borrowable resources of $29.4 billion, which was $3.07 billion more than predicted in the governor’s May Revision and $5.08 billion more than anticipated in the 2016-17 Budget Act. Outstanding loans of $11.71 billion were $1.17 million lower than projected in May and $2.09 billion lower than projected in the 2016-17 Budget Act. This loan balance consists of borrowing from the state’s internal special funds.