Still Plenty of Cash

We have the first monthly cash report now available from the state controller for July. Unused borrowable resources stood at an astounding $101 billion, up from $74 billion a year ago.

Revenues were below forecast levels for July by about $671 million, mainly from lower than predicted income tax receipts. It is likely that this result stems from the jittery stock market and its effect on capital gains. 

Of course, one month's results don't tell you much about an entire fiscal year. But they are in keeping with the observation we have been making that the long-awaited recession seems not to be arriving. Sales tax receipts were higher than expected, suggesting strength in the underlying economy.

You can find the controller's July report at:

https://sco.ca.gov/Files-ARD/CASH/July2023StatementofGeneralFundCashReceiptsandDisbursements.pdf.