State still ahead on receipts

The latest monthly cash report from the state controller shows receipts through November during the current fiscal year. For the first five months of the year, receipts came in ahead of forecast values to the tune of $3.9 billion, mainly due to the income tax and the corporation tax. For just the month of November, receipts were below forecast values but this gap appears to be due to the fact that Thanksgiving came at the end of the month. Thus, withholding payments for that period will likely show up in early December.

The going hypothesis is that the extra revenue is coming from the high tech sector and capital gains therein.

Unused borrowable resources stood at over $93 billion. Not all of that cash can be used to deal with deficits on an annual basis. But it can be used to cover monthly imbalances within the fiscal year.

The controller's report for November is at https://sco.ca.gov/Files-ARD/CASH/November2024StatementofGeneralFundCashReceiptsandDisbursements.pdf.

There is a sense that despite the $3.9 billion in unexpected receipts, the budgetary outlook for UC will be constrained. But what the governor will propose and what the legislature will do remains to be seen. The budget process is not over 'til it's over (in June).