State Controller John Chiang today released his monthly report covering California’s cash balance, receipts and disbursements in March. Total receipts for the month were $370 million lower (-5.8 percent) than estimates found in the Governor’s proposed 2011-12 State Budget.
“The State’s cash position actually worsened by $370 million in March, despite very strong income tax collections,” said Chiang. “California’s economic recovery is clearly underway but is threatened by a budget gridlock that could halt job-producing public works projects, further erode the State’s credit ratings, and delay billions of dollars in payments.”
Sales taxes were up $9.7 million (0.5 percent) in March, and personal income taxes came in $1.2 billion above (144.7 percent) estimates. The drop in revenues was caused by corporate taxes, which were down $387.6 million (-19.7 percent), and the cancelled sale and lease-back of State properties that was slated to generate $1.2 billion in March.
The State faced a $19 billion cash deficit on March 31. That deficit was covered by $9 billion of internal borrowing – short term loans from special funds – and $10 billion of external borrowing.
March 2011’s financial statement and the summary analysis can found on the Controller’s Web site at www.sco.ca.gov. The site also includes an April Tax Tracker, which lists the daily amount of personal income tax collected. The Governor’s proposed 2011-12 State Budget expects more than $6.8 billion of income tax collections in the month of April alone.
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