We now have data on cash receipts of the state's general fund from the state controller for the first nine months of the fiscal year, i.e., through March. Of course, more will depend on April when income taxes are due. However, the first nine months show the basic problem the state is facing.
When the current state budget was enacted, the projection was that the state would receive $169 billiion July-March. By the time the governor made his budget proposal for next fiscal year in January, the estimate had been cut to $146 billion, a big drop. But even that number appears to be an overestimate. Actual receipts were $140 billion. Most of the drop is accounted for by the personal income tax and corporate tax.
Still, the state is not in the kind of emergency situation it was in back in 2009 when it ran out of cash to pay its liabilities and handed out IOUs. It is still sitting on unused cash resources of $86 bilion so there won't be a need for borrowing from external financial markets and there won't be IOUs. But there will be stringency in whatever budget is enacted for 2024-25.
You can find the latest controller's statement at:
https://sco.ca.gov/Files-ARD/CASH/March2024StatementofGeneralFundCashReceiptsandDisbursements.pdf.
No comments:
Post a Comment