California revenues beat expectations in September
LOS ANGELES — California revenues beat expectations for the first three months of the fiscal year by $666 million, according to the California Department of Finance monthly cash report.
General fund agency cash for September was $190 million above the 2017-18 Budget Act forecast of $10.6 billion while year-to-date revenues were $666 million above the $25.2 billion anticipated, according to the report.
Personal income tax revenues were $9 million above the month’s forecast of $7.6 billion. Withholding receipts were $75 million above the forecast of $4.7 billion. Other receipts were $38 million lower than the forecast of $3.4 billion. Refunds issued in September were $29 million above the forecasted $284 million.
Proposition 63 requires that 1.76% of total monthly personal income tax collections be transferred to the Mental Health Services Fund. The amount transferred to the MHSF in September was equal to the expected $137 million.
Year-to-date general fund revenues are $152 million above forecast. Sales and use tax receipts were $5 million above the month’s forecast of $1.9 billion. September represents the second prepayment for third quarter taxable sales. Year-to-date revenues are $247 million above forecast.
Corporation tax revenues were $125 million above the month’s forecast of $931 million. Prepayments were $36 million above the forecast of $957 million and other payments were $101 million higher than the $124 million forecast. Total refunds for the month were $12 million higher than the forecast of $149 million. Year-to-date revenues are $214 million above forecast.
California’s personal income grew by 3.4% in the second quarter after growing 4.1% in the first quarter on a year-over-year basis. That's ahead of the 2.9% growth rate for U.S. personal income.