(Corrects headline to $1.8 mln from $11.8 mln)
SAN FRANCISCO, March 11 (Reuters) – California’s revenue in
February came in $1.8 million below estimate in Governor Jerry
Brown’s proposed state budget plan as revenue from personal
income tax weakened, the state controller’s office said on
Monday.
Revenue from personal income tax collections, the state’s
most important source of revenue, was $441.2 million below
estimate in the budget proposals, reflecting a large number of
tax refunds in February instead of January when they were
initially expected to be sent.
Better than expected gains in revenue from sales tax and
corporate tax collections helped offset the lower than expected
revenue from personal income tax collections.
Revenue from sales tax collections was $363.5 million above
estimate in the budget proposal while revenue from corporate tax
collections was $26.3 million above forecast.
“February’s revenues came within a percentage point of
estimates,” State Controller John Chiang said in a statement.
“Healthy revenues, along with recovering home prices, a steep
drop in foreclosures, and increased car sales are harbingers of
a California economy that is starting to warm-up.”
California’s revenue since the July 1 start of its fiscal
year is $4.3 billion above expectation, according to a spokesman
for the controller.
Chiang’s office in its monthly revenue report said
California’s leaders should remain cautious about the state’s
revenue trend: “The economy could lose momentum, which could
adversely impact tax receipts even with the effect of higher tax
rates. It will also be critical that spending remain restrained
to keep the State on a track toward fiscal health.”
Brown’s budget proposal projects the state budget to swing
to a surpluses thanks to the improving economy, new revenue from
tax increases approved by voters in November and fellow
Democrats who control the legislature backing his plan for
holding down spending.
(Reporting By Jim Christie; Editing by Leslie Gevirtz)
