State Controller John Chiang said Wednesday that state revenues in March came in $395 million, or 7.2%, above estimates in the governor's proposed budget.
For the fiscal year through March, state revenues were $4.7 billion higher than projections in Gov. Jerry's Brown's budget, according to the controller.
"While the first nine months of revenue far exceeded expectation, income tax deposits over the next two weeks will show whether that uptick is solid or fleeting," Chiang said in a statement. "The governor and lawmakers have exercised discipline by waiting to make spending decisions until we can explain whether this surge reflects economic growth, or simply means that taxpayers paid their taxes earlier than usual."?
State personal income tax receipts for March drove the increase, rising $324 million, or 15%, above monthly budget estimates. Corporate receipts rose $82 million, or 6%, above projections, according to Chiang's office.
However, sales taxes fell $132 million, or 8%, below expectations in the governor's spending plan, the controller said.
The controller said that by the end of March the state had a $15 billion cash deficit covered by $5 billion of internal borrowing and $10 billion of external borrowing.