California’s cash balance was 6% lower than estimates, largely with a drop in personal income taxes.
The state collected $4.8 billion in July, compared to projections of $5.1 billion, according to the State Controller’s Office.
“Reflective of the state’s improving fiscal health, California’s upcoming cash flow for borrowing is shaping up to be the smallest in four years,” says State Controller John Chiang. “While this month’s numbers disappoint, reaction must be tempered by the fast that July is often the state’s least significant revenue collection month.”
Personal income taxes were $273 million – or 7% — lower than projections in the state budget. Corporate taxes and sales-tax revenue were up 4.9% and 0.9% from projections.
The state ended the month with a cash deficit of $10.9 billion, covered with internal borrowing from other funds.
California will only need about $5.5 billion in short-term borrowing this fiscal year, the lowest in four years – and about half the amount in 2012-13, Chiang says.