June Revenues $622 Million Above Estimates

Tax collections from June, now the state’s largest month for receipts, were more than $11.7 billion — $622 million above estimates by state budget writers in May. 

Since January, revenues are ahead of projections by $540 million chiefly because of higher-than-anticipated income tax payments, according to the Department of Finance’s July bulletin.

More revenues mean less spending reductions although the budget signed by Gov. Jerry Brown June 27 expects voters to approve $5.6 billion in higher temporary income and sales taxes in November. If the ballot measure fails, state support for public schools will be reduced by $5.5 billion, the blow only modestly softened by the above-estimates revenues.

In June, sales tax collections were $10 million below estimates and bank and corporations taxes were $33 million below estimates. 

Since January, corporate tax collections are $316 million below estimates and sales tax revenue $62 million below. 

June is when 40 percent of estimated tax payments are due.  

Ten of the state’s top metropolitan area saw modest job growth from January through May 2012 compared to the same period last year. 

Sales of distressed homes were 41 percent of sales in May, according to the bulletin. That’s down from 44 percent in April and 49 percent in May 2011.

“Regional employment as well as pending home sales information for May indicate that the recovery is on firmer ground than a year ago,” the bulletin concludes.

-30-