SACRAMENTO
- State Controller John Chiang today released his monthly
report covering California's cash balance, receipts and disbursements
in May 2014. Revenues for the month totaled $6.7 billion, missing
estimates in the Governor's January proposed budget by $389.1 million,
or 5.5 percent. Year-to-date, revenues still exceed
expectations by $1.8 billion, or 2.1 percent.
"While
this is the first time in six months that revenues have fallen short,
the overall budgetary health remains stable and there is no threat to
the State's
ability to pay its bills on time and in full." said Chiang. "As
lawmakers finalize their spending decisions in the coming days, my
office urges fiscal restraint with an eye toward slashing the billions
of dollars in debt accrued during the Great Recession."
Because
the State's cash position exceeded expectations by $5 billion as of the
release of the Governor's May Revision, the Department of Finance --
with the
concurrence of the offices of the State Treasurer and State Controller
-- did not produce formal cash flow projections for the May Revision. As
a result, actual May receipts and disbursements are compared against
projections provided in the Governor's January
budget proposal.
Income
tax collections for the month of May came in $254.2 million, or 7.4
percent, below estimates in the Governor's January proposed budget.
Corporate taxes
were below estimates by $177.6 million, or 99.8 percent. Sales taxes
also came in short of estimates by $98.6 million, or 3.1 percent.
As
of the end of May, the State's cash reserves exceed the Governor’s
January projection by $4.9 billion. This positive reserve is comprised
of $3.5 billion
in greater than anticipated internal borrowable resources and a cash
deficit that is lower than projections by $1.4 billion. That cash
deficit, now $8.5 billion, is being covered by both internal and
external borrowing.
For more details on today's report, read the
financial statement and
summary analysis.
Read a version of this press release in
Spanish.
For more news, please follow the Controller on Twitter at
@CAController, and on Facebook at
California State Controller's Office.
