California sees strong month for tax revenue
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In a positive sign for California’s finances, state officials said Wednesday that tax revenue exceeded expectations by $208 million in October.
The surge allows the state to inch closer to its overall goal for the fiscal year. The gap between actual tax revenue and state estimates narrowed to .7% from 2.1%.
Gov. Jerry Brown is hoping that for the first time in five years, the state ends the fiscal year without a deficit.
The current budget includes a nearly $1-billion reserve to help cushion the state against shortfalls in tax revenue or higher-than-expected spending. In addition, voters approved Brown’s tax-hike plan, Proposition 30, providing an estimated $6 billion in annual revenue.
The nonpartisan Legislative Analyst’s Office will release its own annual forecast on California finances on Wednesday afternoon. There are still warning signs for the state budget. Administration officials counted on saving $3.1 billion in the current fiscal year from the dissolution of redevelopment agencies, but so far those savings have fallen far below expectations.
The Legislative Analyst’s Office has previously said the state could end up almost $1 billion short.