California sees strong tax revenue in June
SACRAMENTO -- The fiscal year ended on a high note for California, according to a report released Monday evening by the nonpartisan Legislative Analyst’s Office.
The report said income and corporate taxes generated $1 billion more than Gov. Jerry Brown estimated in June.
The analyst’s office said revenue will probably be higher than even its own more optimistic projections when the final numbers get crunched.
As the Legislature finished working on the state budget last month, some Democratic lawmakers suggested the possibility of restoring spending to social services faster if tax revenue remained strong.
Gov. Jerry Brown, however, has not shown any willingness to do so. The new budget took effect Monday.
Standard & Poor’s, the Wall Street ratings agency, said state leaders should be careful because California taxes are unreliable and Brown’s temporary tax-hike plan will begin expiring in the next few years.
“Most likely, the state’s revenues won’t outperform expectations indefinitely,” the agency said in a Monday report. “In fact, it’s heading for a known-in-advance revenue cliff in fiscal 2019 when the personal income tax hike portion of Proposition 30 expires.”
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