Tax revenue falls short in first month of new fiscal year
SACRAMENTO -- The state’s fiscal year is off to a slower start than Gov. Jerry Brown hoped.
Tax revenue was $266 million below projections in July, according to a report released Thursday by the governor’s Department of Finance.
Much of the shortfall is the result of Brown administration officials counting on a significant spike in withholding tax revenue. Instead, receipts fell $195 million short.
Sales taxes were also $123 million short. The nonpartisan Legislative Analyst’s Office recently warned that taxing purchases has become increasingly less helpful to the state’s bottom line.
Overall, the last several months have been strong for state taxes. A July report said the state generated $2.1 billion more than expected in the fiscal year that ended just over a month ago.
A previous version of this post said the report was released Tuesday. It was released on Thursday.
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