California Economy Warming Up?
State Controller John Chiang
Sacramento, CA -- State Controller John Chiang says last month's cash report came close to matching projections in the Governor's proposed 2013-14 budget.
"February's revenues came within a percentage point of estimates," said Chiang. "Healthy revenues, along with recovering home prices, a steep drop in foreclosures, and increased car sales are harbingers of a California economy that is starting to warm-up."
Revenues were down $1.8 million from what was estimated in the Governor's budget, but when compared to February of 2012, they were up by $899.6 million (20.5%).
Chiang's office notes that corporate taxes came in $26.3 million above the budget estimates (22%) and sales tax receipts were up by $363.5 million (13.8%). However, personal income taxes were $441.2 million below estimates (18.6%). The Controller's Office believes this was due to large tax refunds going out in February, which were initially expected to go out in January.
The state will not have a clear picture of its finances until around April, when a majority of the income taxes are typically collected.
Written by BJ Hansen