LOS ANGELES — California fell slightly short of revenue projections in November, but remains more than half a billion dollars ahead of budget projections for the first five months of the fiscal year, according to State Controller Betty Yee's monthly
Overall revenue projections for November fell short by $39.8 million, because a $300 million payment the state expected in November had been received three months early. The payment was a settlement between the California Public Utilities Commission and Pacific Gas & Electric Co. over a 2010 pipeline explosion in San Bruno.
Sales tax revenue, personal income tax revenue and corporation taxes continued to surpass budget estimates, according to the report, released Dec. 10.
Sales tax revenue hit $3 billion surpassing projections by 5.4%. Personal income tax revenue of $3.8 billion beat estimates by $47.5 million, or 1.3%. The corporation tax brought in $89.1 million, almost double the anticipated amount, mostly the result of higher-than-expected estimated payments by corporations.
For the fiscal year that began July 1, higher-than-expected proceeds through November from the personal income tax were more than enough to offset shortfalls in the sales and corporation taxes. The state is $502.9 million ahead of budget projections.
The personal income tax generated $888.2 million, or 3.8%, more than anticipated. The sales tax fell short by $226.7 million, or 2.3%, while the corporation tax trailed projections by $146.4 million, or 8.6%
The state ended the month of November with $12.2 billion in outstanding loans—$752.5 million, or 5.8%, less than expected.
"For the first year in 15 years, the state is covering month-to-month shortfalls exclusively through internal borrowing from special funds rather than external loans, such as revenue anticipation notes," Yee said in the report. "The improved fiscal condition of the General Fund, the source of most state spending, has saved the state tens of millions of dollars in interest costs."
