More State Cash

The state controller reports that for the first quarter of the current fiscal year (2018-19), revenues to the General Fund ran about $1.4 billion above estimates made when the budget was enacted last June.

Personal income tax receipts and sales tax receipts were up about 5% above forecast levels. The corporate tax was up 8% above forecast.

So there is no cash pressure on the state at the moment. If a downturn occurred, the state could likely go for about a year before the crunch was felt.

Nonetheless, recent stock market events are a reminder of the dependence of the state on a relatively small number of high-income earners whose taxable income is sensitive to the ups and downs of financial markets.

You can find the controller's September statement at:
https://www.sco.ca.gov/Files-ARD/CASH/September%202018%20Statement%20of%20General%20Fund%20Cash%20Receipts%20and%20Disbursements....pdf