State Controller Confirms That California Tax Collections Are $4.6 Billion Over Estimates
Echoing previous statements by the Franchise Tax Board and the Legislative Analyst, State Controller John Chiang’s April report covering California’s cash balance, receipts and disbursements shows state revenues are $4.6 billion over estimates contained in Gov. Jerry Brown’s January budget plan.
In April alone, tax receipts totaled $15 billion, Chiang reported. All but $200 million of the $4.6 billion is higher-than-anticiapted state income tax payments.
“We’ve reached an important milestone in California’s economic recovery. For the first time in nearly six years, we closed out a month without borrowing from internal state funds to pay our bills,” Chiang said in a statement. “But, there remains significant debt that must be shed before we can claim victory and these unanticipated revenues provide us with an important opportunity to take further steps toward long-term fiscal stability.”
Corporate taxes for April were $6.6 million above monthly estimates. Sales tax receipts were $113.4 million above estimates.
Despite the “extra” cash, the Legislative Analyst has warned that public schools could receive the bulk of it.
Under the formulas approved by voters in Proposition 98, which generally require 4o cents of every buck the state receives to be paid to public schools, if there are large spikes in income for the state—like this year—and if the state has been shorting schools—as it surely has—then most, and potentially all, of the unexpected cash will be spent on schools and community colleges.
Brown has said he will unveil his revised spending plan May 14.
Filed under: Budget and Economy
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