The state’s tax revenue is outpacing earlier projections by about $4.5 billion over the last eight months, according to new figures from the State Controller’s office.
The rosier-than-anticipated state revenue numbers are the result of income taxes coming in to state coffers at a higher rate than what was predicted by the governor’s office last summer.
Those strong income tax numbers have made up for sales and corporate taxes, which have been soft. But Controller John Chiang said in a statement Monday he was encouraged by the February numbers, which show money from both levies was higher than expected in February.
“Healthy revenues, along with recovering home prices, a steep drop in foreclosures, and increased car sales are harbingers of a California economy that is starting to warm-up,” Chiang said in a statement released Monday.
The budget picture will become clearer in April, when the state typically collects the bulk of its income tax dollars. Next month, state officials estimate California will take in more than $10 billion of the $61.8 billion in income taxes that budget makers are counting on for the year.