Controller’s Cash Update Shows Revenues Match Budget Projections; Corporate Taxes Way Off
State Controller John Chiang announced that figures from his latest update are proof that California’s budget picture is on the mend. December's totals were $103.4 million above (1.1 percent) estimates found in the 2012-13 state budget. Chiang commented, “The month's revenues closely match budget projections.”
That being said, one thing that stands out in the monthly report covering California's cash balance, receipts and disbursements is the fact that corporate taxes came in a whopping $445.9 million below (-31.2 percent) monthly projections! In addition, during the month of December, personal income taxes came in $767.6 million above (13.4 percent) monthly estimates contained in the 2012-13 state budget.
The Controller’s report also points out that December’s figures were distorted by timing issues. The explanation reads: “While $1 billion of sales tax was deposited into the Board of Equalization's bank account on December 31, those dollars were not transferred to the General Fund for another two days. Because the Controller's monthly cash report shows General Fund balances reported by close of business on December 31, the $1 billion of late-deposited December sales tax dollars will instead appear in January's report. Without accounting for this timing issue, total revenues fell $896.6 million below (-9.6 percent) monthly estimates.”
You can read December’s financial statement here. Summary analysis available here.