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State Receipts Drop Again in April, Erasing Four Months of Modest Improvement

May 13, 2010

Last Friday, State Controller John Chiang released his monthly report covering California’s cash balance, receipts and disbursements in April.

The month’s receipts dropped below the Governor’s 2010-11 budget estimates by $3.6 billion, or 26.4 percent – reversing the slow progress of several previous months.  Through March, the States’ revenues had been tracking more than $2.3 billion ahead of projections.

“Four months of positive receipts were erased in the last 10 days of April,” said Chiang.  “Because a surge in revenues has not come, the Governor and Legislature need to move quickly and forge the consensus needed for a balanced budget.  Any delay will only limit their options and expose already struggling Californians to greater harm.”

Year-to-date revenues are now behind estimates by approximately $1.3 billion.  Personal income taxes accounted for most of the drop in April, coming in $3.1 billion below projections for the month and $2.2 billion short for the year-to-date.  State expenditures, however, were running $102 million behind estimates through April 30.

The State started the fiscal year with an $11.9 billion cash deficit in the General Fund, which grew to $20.2 billion by April 30.  Those deficits are being covered with a combination of $11.4 billion of internal borrowing from special funds and $8.8 billion in short-term Revenue Anticipation Notes.

April 2010’s financial statement and the summary analysis can found on the Controller’s Web site at www.sco.ca.gov.

Source:  State Controller's Office.