California revenues miss expectations for July
California revenues for the first month of the fiscal year came in $178 million below forecast, according to the state’s Department of Finance.
General fund agency cash receipts from sales and use tax receipts and corporation tax revenues were below expectations $480 million and $17 million, respectively.
Personal income tax revenues and insurance tax cash receipt exceeded expectations forecast in the 2018-19 budget by $249 million and $3 million, respectively.
The largest source of revenue in California comes from personal income tax receipts and July is not a significant month for estimated or final income tax payments, according to the report.
The state’s real GDP increased at an annualized 1.5% in the first quarter of 2018, following 3% annual growth in 2017. U.S. real GDP rose 2.2% and 4.1% in the first quarter and second quarter of 2018, respectively, following 2.2% annual growth in 2017. Consumer price inflation rose 3.9% in California and 2.9% in the U.S. from June 2017 to June 2018.
The unemployment rate remained at the record low of 4.2% for the third straight month in June. The U.S. unemployment rate rose 0.2% to 4% in June before falling to 3.9% in July.