Controller Says Revenue Nearly $500 Million Below Estimates for First Month of New Fiscal Year

SACRAMENTO – Total revenues were $475 million below projections contained in the budget for the fiscal year that began July 1, said State Controller John Chiang on August 13 in his monthly report covering California’s cash balance, receipts and disbursements in July 2012.

“Revenue collections were disappointing for the month of July,” said Chiang. “However, because spending appears to be tracking and the funds that the state depends on for liquidity are performing well, California’s cash outlook remains stable.”

Personal income taxes in the month of July rose $12 million above projections, while sales taxes were down $295 million, more than one-third less than projected. Corporate taxes were up for the month, coming in $57.1 million — 27.4 percent — above projections.

Because a $1.5 billion school payment, originally scheduled to be issued in September, was paid in July, disbursements for the month were $1.2 billion over projections. The September cash report should reflect a settle-up.

The state ended the last fiscal year with a cash deficit of $9.6 billion. As of July 31, that cash deficit totaled $18 billion, and is being covered with temporary loans from special funds.

For more details on today’s report, read July 2012’s financial statement and summary analysis.