California Budget Revenues Better Than Expected
Sacramento, CA —The projections in January about the February General Fund revenue was $3.8 billion, but after all the dollars and cents were totaled up, $14.3 billion ended up being the final total. Nearly 60 percent of that gain can be attributed to a couple of things, lower refunds caused by later enactment of the $600 one-time Golden State Stimulus and fewer than expected state tax refunds tied to a delayed federal start to the tax filing season.
Governor Newsom states, “California’s improving revenue picture is another sign of the growing light at the end of the tunnel as we recover and rebuild from the pandemic, In partnership with the Legislature, we’ve ensured much of these revenue gains are providing immediate relief for individuals and families through the Golden State Stimulus and for struggling small business through a more than 22 billion boost to our investment in relief grants.”
The improved revenue picture does allow the state to delay $2 billion in scheduled program suspensions for one year.