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Controller Reports February State Revenues Short of Budget Forecasts

March 23, 2019

California’s total revenues of $5.51 billion in February were lower than forecasted in the governor’s proposed 2019-20 fiscal year budget by $1.34 billion, or 19.5 percent, and in the FY 2018-19 Budget Act by $2.01 billion, or 26.7 percent, State Controller Betty T. Yee reported on March 11.

Two-thirds of the way through FY 2018-19, total revenues of $79.93 billion were lower than expected in the proposed and enacted budgets by $4.20 billion and $3.33 billion, respectively. For the fiscal year to date, state revenues are 1.4 percent lower than the same time last year.

Last month, sales and corporation taxes –– two of the state’s “big three” revenue sources –– came in higher than assumed in the governor’s proposed budget released in January.

For February, personal income tax (PIT) receipts of $1.39 billion were $1.82 billion, or 56.6 percent, less than the Department of Finance forecasted in January; and they were $2.05 billion, or 59.5 percent, lower than assumed in the budget enacted last June. In the current fiscal year, PIT is 6.0 percent below the FY 2018-19 budget forecast.

Sales tax receipts of $3.76 billion for February were $407.7 million higher than anticipated in the proposed FY 2019-20 budget but $58.3 million less than expected in the FY 2018-19 Budget Act.

Corporation taxes of $258.4 million in February were 59.8 percent higher than estimates in the FY 2019-20 proposed budget and 78.5 percent higher than in the enacted FY 2018-19 budget.

For more details and comparisons, read the monthly cash report.

Sources: California Controller’s Office

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