State revenues $2.68 Billion short of 2016-17 budget
July 10, 2017
• All of the “big three” revenue sources missing the mark
• June’s $16.63 Billion in revenue short of projections
California’s state government saw total revenues of $16.63 billion in June -- short of even the revised projections made by Gov. Edmund Brown Jr. just two months ago, says state Controller Betty Yee.
The state is just a few days into its new budget year, which began July 1.
But for the fiscal year that ended June 30, total revenues of $121.91 billion missed revised estimates by $295.7 million, or 0.2 percent. The fiscal year total was $2.68 billion lower than anticipated in the 2016-17 budget signed last summer, with all of the “big three” revenue sources missing the mark.
For June, personal income tax (PIT) receipts of $10.94 billion were $161.0 million shy of May estimates, or 1.5 percent. For the fiscal year, PIT receipts of $82.72 billion were $1.05 billion lower than projections in the FY 2016-17 Budget Act, but lagged May estimates by just $196.3 million, or 0.2 percent.
June corporation tax receipts of $2.42 billion were $344.4 million lower than anticipated in the May Revision, or 12.5 percent. The fiscal year total of $10.11 billion in corporation taxes was $885.6 million lower than FY 2016-17 Budget Act projections and $283.1 million less than expected in the May Revision.
Retail sales and use tax receipts of $2.32 billion for June were $57.2 million, or 2.5 percent, higher than May estimates. For FY 2016-17, total sales tax receipts of $24.71 billion missed the original Budget Act projections by $1.03 billion; they topped May Revision assumptions by $126.7 million, or 0.5 percent.
California has not pursued external borrowing since FY 2014-15. The state ended last fiscal year with unused borrowable resources of $36.98 billion, which was $3.99 billion more than predicted in the governor’s May Revision. Outstanding loans of $4.84 billion were $1.64 billion lower than the Department of Finance’s May estimates. This loan balance consists of borrowing from the state’s internal special funds.