California July Cash Report Update
“State tax revenue is down. Is this a signal of things to come? When the next economic downturn hits, California is going to miss revenue projections by a larger margin. If the economy is contracting, then California will have to borrow to fund its budget. If the stock market corrects, California's pension plan systems will incur severe investment losses, compounding their unfunded liabilities on the state's balance sheet.
"As the legislature continues to pass hundreds of bills in the final days of Session, it needs to remember that there may be a looming fiscal downturn on the horizon for this state. Sacramento must show restraint and focus on its spending priorities. This should include paying down debt, putting even more money away in the rainy day fund, and prioritizing transportation needs over a costly high-speed rail project."
-Senator John Moorlach
CA Controller’s July Cash Report Shows Revenues Well Short of Budget Projections
California State Controller's Office
August 11, 2016
"SACRAMENTO -- July state revenues came in below projections in the 2016-17 Budget Act approved the previous month by $591.3 million, or 9.8 percent, with all three of the state’s main revenue sources falling short of expectations for the first month of the fiscal year, State Controller Betty T. Yee reported today."
"Personal income tax receipts of $4.39 billion were $323.3 million lower than anticipated in the Budget Act, missing estimates by 6.9 percent."
"'The declines in all three revenue categories may be attributable to the slower rate of job growth when compared to 2015,' said Controller Yee, the state’s chief fiscal officer."