State Cash at the Half-Way Point

On Wednesday, we provided a summary of the state budget situation in the context of the governor's budget proposal for 2024-25. We also have from the state controller information on the cash situation for this year through December. December was a significant marker because income tax due dates for most of California were delayed, eventually to December.

As it turned out, a lot less came in than had been projected. Receipts are listed as $98.5 billion, well below the forecast level of $126.6 billion. The gap between actual and forecast was centered in personal income tax receipts (loss of capital gains revenue) and the corporate tax.

Still, the state had on hand $88.5 billion in unused borrowable resources, a little below the forecast level of $91.8 bullion, but still a lot. So despite the state's current budget pressures, there won't be a need to run to Wall Street to handle the current problem - unlike what has occurred in earlier budget downturns. 

The controller's data are at https://sco.ca.gov/Files-ARD/CASH/December2023StatementofGeneralFundCashReceiptsandDisbursements.pdf.