The new fiscal year for California is off to its expected start—the deficit and Depression is deepening.
“Controller John Chiang notes in his monthly report that during July, revenue trailed forecasts by $475 million, or better put was 10.1 percent below assumptions in the Governor’s budget. Lower-than-expected sales-tax receipts were a major factor in the shortfall. Overall, sales taxes were down -$295 million (-33.5 percent), while personal income taxes in the month of July rose $12 million above (0.4 percent) projections.”
At the same time Guv Brown wants to spend $203 billion on a choo choo train to nowhere. Oh, and he wants massive tax increases, forcing more businesses to leave the State. Brown policies are textbook on how NOT to get a recovery.
Controller’s July Report: $18 Billion Cash Deficit; Revenue Falls 10.1% Below Forecast
California County News, 8/15/12
The State Controller’s latest cash update is a sobering reminder of California’s financial woes, as the report reveals that the state is now $18 billion short on cash, which is currently being covered by internal special funds borrowing. The report shows the extent to which the state is struggling to pay its bills before voters weigh the governor’s tax hike initiative. Controller John Chiang notes in his monthly report that during July, revenue trailed forecasts by $475 million, or better put was 10.1 percent below assumptions in the Governor’s budget. Lower-than-expected sales-tax receipts were a major factor in the shortfall. Overall, sales taxes were down -$295 million (-33.5 percent), while personal income taxes in the month of July rose $12 million above (0.4 percent) projections.
Chiang commented, “Revenue collections were disappointing for the month of July. 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.”
Read July’s financial statement here.
Summary analysis is available here.
