California Revenues Down 6% in July

California's revenues for July came in about 6% below estimates, State Controller John Chiang said Monday.

Revenues for the month, which is the first of the state's fiscal year, totaled $4.8 billion. That's $300 million less than the Department of Finance estimates of $5.1 billion.

"Reflective of the state's improving fiscal health, California's upcoming cash flow borrowing is shaping up to be the smallest in four years," Chiang said in a statement. "While this month's numbers disappoint, reaction must be tempered by the fact that July is often the State's least significant revenue collection month."

California is expected to sell $5.5 billion of revenue anticipation notes on Thursday in its annual cash-flow borrowing deal.

The controller said this will be the smallest cash-flow borrowing in the state's recent history. Last year California borrowed $10 billion, in 2011 it borrowed $6.4 billion, and in 2010 it also borrowed $10 billion.

Personal income taxes for July came in $273 million below estimates outlined in the state budget, according to Chiang's monthly report covering California's cash balance, receipts, and disbursements. Corporate taxes were $10.1 million above estimates, while sales tax receipts were up $7.1 million.

California ended July with a general fund cash deficit of $10.9 billion, which was covered with internal borrowing from other funds.