State Revenues for May Miss Mark by $130 Million

Revenues collected by state government in May were $130 million below the latest projections by the Deukmejian Administration, the legislative analyst’s office said Friday.

The report said the revenue shortfall resulted primarily from weaker-than-predicted receipts for the three major taxes.

It said bank and corporation taxes were down $26 million from the Department of Finance projections issued May 9, personal income taxes were down $41 million and sales and use taxes were down $65 million.

Collections in May from all other general fund revenue sources, including interest income, were $49 million above the estimate. However, $47 million of the amount represented a temporary cash-flow gain due to the early recording of interest income, and thus the total of other sources actually was up only $2 million.