TAHOMA, Calif. - California’s September revenues came in $147 million below budget estimates, leaving a $379 million gap year to date, according to the department of finance.
Sales and use tax revenues and corporate tax revenues both fell $51 million each below expectations, the department said in a report Friday.
Insurance tax revenues also dropped $127 million below estimates, mainly because the money was collected at the very end of August rather than when it was expected in September, the report said.
However, personal income taxes rose $109 million above the month’s forecast.
Unlike past years, the revenue gap is likely manageable in contrast to the state’s $91 billion budget.
California has faced tens of billions of dollars of mid-year budget gaps in recent years.
According to Controller John Chiang, the state ended the last fiscal year with a cash deficit of $9.6 billion. As of the end of September, that deficit was $22.3 billion, which has been covered with $12.3 billion of internal borrowing and a $10 billion revenue anticipation note sale.
Chiang said in his office’s separate report on state finances released earlier in the month that revenues fell $162 million below budget projections.
“Overall, revenues in the first quarter were 1% off projections, which indicates that the State’s cash position – its ability to pay bills in full and on time – is stable,” Chiang said.