Sacramento, CA — Citing that personal income tax revenues were lower than anticipated, April’s state revenue projections were off by $1.19-billion.
Revenues had been constantly outpacing budget projections over the past couple of years as the statewide economy had been improving, notably in the coastal areas.
California Controller Betty Yee says, “We know that state revenues cannot defy gravity forever. It is too early to call this a trend rather than a one-time occurrence. However, we should always expect peaks and valleys in the state’s financial performance.”
According to Yee, most Californians file their tax returns in April, and the month’s total is closely watched as a possible bellwether of the state’s fiscal fortunes. April personal income tax revenues of $13.40 billion fell short by $1.22 billion, 8.4 percent less than projected in the January proposed budget. Retail sales and use tax revenues of $816.1 million lagged by $53.9 million, or 6.2 percent. Only the corporation tax beat estimates, with revenues of $1.98 billion coming in $95.4 million higher than expected, or 5.1 percent.
April’s revenues were $215-million lower than last year. However, when looking at the year-to-date totals, revenues are up $4.99-billion compared to this time last year.