LOS ANGELES - California's revenue in January was down 20% from the same period last year, but surpassed budget estimates, State Controller John Chiang said Monday.
According to his
"Strong revenues for the month of January confirm California is continuing its slow climb out of the wreckage of the Great Recession," Chiang said in a statement. "Better-than-expected income tax receipts - particularly those straight from paychecks - could indicate Californians are working and earning more."
Income tax receipts, boosted by increases in jobs, total earnings, and capital gains, exceeded Brown's expectations by $251.5 million, or 2.4%. Corporate tax receipts came in at $186.3 million, or 266.2%, ahead of estimates.
Sales and use taxes were $120.1 million below estimates.
The state ended the month with a general fund cash deficit of $12.6 billion which was covered with internal and external borrowing. Chiang said that figure was down from last year, when the state faced a deficit of $15.7 billion at the end of January.
"While year-to-date revenues are $427.5 million ahead of estimates adjusted upward only a month ago, the stock market's volatility reminds us that continued revenue outperformance should not be taken for granted," Chiang said. "Spending discipline and paying down debt must continue to be our focus."
