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Strong Retail Sales Keep State’s October Revenues Close to Budget Estimates

November 13, 2017

California State Controller Betty T. Yee reported on November 9 that California’s total revenues of $6.74 billion for October were just $38.7 million shy of expectations, even with two of the state’s biggest revenue sources missing the mark. A strong month for retail sales made up for most of the shortfall.

For the first four months of the 2017-18 fiscal year, total revenues of $32.65 billion are outpacing budget projections by $544.8 million, or 1.7 percent, with all of the “big three” – personal income, retail sales and use, and corporation taxes – in the black.

Sales tax receipts of $936.1 million for October were $45.0 million higher than anticipated in the budget. For the fiscal year, sales tax receipts of $6.86 billion are $195.3 million above budget estimates.

Personal income tax (PIT) receipts for October totaled $5.38 billion, falling $49.8 million short of budget estimates. For the fiscal year to date, total PIT receipts of $22.97 billion are $166.4 million above assumptions in the 2017-18 Budget Act.

Corporation tax receipts for October totaled $285.6 million, $78.1 million below projections – or 21.5 percent – after beating expectations for three consecutive months. For the fiscal year, corporation tax receipts of $1.81 billion are outpacing budget projections by 8.6 percent.

Outstanding loans of $19.54 billion in October were $1.26 billion more than 2017-18 Budget Act estimates. This loan balance consists of borrowing from the state’s internal special funds. Unused borrowable resources in October exceeded projections by $1.78 billion, or 8.3 percent.

For more details, read the monthly cash report and the Controller’s California Fiscal Focus newsletter, which examines the changing nature of work due to automation.

Source:  California Controller’s Office

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