Bad Budget News Ahead, Fiscal Year Short $1 Billion
SACRAMENTO, October 9 — For the first three months of the fiscal year, total state general fund revenue was nearly $1.1 billion below the estimates used in the recently amended 2009-10 budget, State Controller John Chiang reported today in his monthly accounting of California’s cash balance, receipts and disbursements in September.
“Revenues more than $1 billion under estimates — and recent adverse court rulings — are dealing a major blow to a budget that is barely 10-weeks old,” said Chiang.
“While there are encouraging signs that California’s economy is preparing for a comeback, the recession continues to drag State revenues down. I urge lawmakers and the governor to prepare for more difficult decisions ahead.”
All three of the State’s largest revenue sources fell below estimates for September.
When adjusted to account for payments made in September that were previously delayed or issued as registered warrants in July and August, personal income tax revenues for the month were 17 percent below projections — $934 million. Corporate taxes fell 10.5 percent short of predictions, $183 million. And sales
Taxes, which were temporarily increased by the budget signed in February, came in $100 million lower than expected.
California started the fiscal year in July with an $11.9 billion general fund deficit, which grew to $16.2 billion by September 30.
Those deficits are being covered with a combination of $7.3 billion of internal borrowing from special funds and $8.8 billion in short-term revenue anticipation notes.
In a recent report calling for state public works spending master-plan, State Treasurer Bill Lockyer notes that the cumulative general fund deficit over the next three fiscal years is estimated to be $38 billion.
Filed under: Budget and Economy
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