What’s Happening on the State Budget and Prop 30 to Date?

The state controller reports that tax revenue for July and August (first two months of the fiscal year) is about on target relative to the June budget estimates (although the amount collected on particular taxes from various targets deviates from the estimates, plus and minus).  Disbursements, however, are up relative to budget estimates by roughly $3 billion which shows up as more borrowing by the general fund from other state funds.  (Why that overage occurred is not explained.)

However, the big uncertainty about the budget this year is whether the governor’s tax initiative passes in November.  So far, the media advertising released has been from the anti-tax side.  The pro-Prop 30 campaign is said to be out-raising funds relative to the anti-side.  However, there is also the rival Munger tax initiative on the ballot and Munger is pushing a self-funded anti-Prop 30 campaign.

You can hear the latest radio ad opposing Prop 30 below.  At the tail end, the ad from the Howard Jarvis Taxpayers Assn. credits Jerrold Perenchio as a major funder.  Perenchio is a former CEO of Univision, the Spanish-language TV network.  He is has been a supporter of various Republican causes and candidates.

The controller's cash report through August is at:

http://www.sco.ca.gov/Files-ARD/fy1213_aug.pdf