Tuesday, November 15, 2022

Where are we now?

Governor Newsom vetoed some spending bills on the grounds that revenues were coming in below forecast levels in fiscal year 2022-23. That was true in the initial months of the year. But the state controller has now published data on revenues and other fiscal matters through October, i.e., the first four months of the year. 

Actual revenues were $49.2 billion in that period, $3 billion AHEAD of the forecast made when the state budget was enacted. The extra revenue is more than accounted for by corporation and personal income tax receipts. If you wanted to worry about something, the fact that sales tax receipts - an indicator of economic activity - are below forecast levels would be something to which you could point.

On the other hand, unused borrowable resources - a measure of reserves that includes official reserves and other available cash - stood at an amazing $90.7 billion, above forecast levels and well above where that measure stood a year ago. So, even a slowdown in the state's economy would not produce a budget crisis, at least in the short run.

You can find the relevant data at


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