In the recent past, we have gotten used to state revenue forecasts falling below actual results due to unanticipated capital gains in personal income tax receipts from AI. We now have one month's cash report for July - the first month of the current fiscal year. Revenues were a bit ahead of the forecast made when the state budget was enacted last June. But the overage is not from income taxes which fell a bit short of forecast estimates. Corporation taxes were the main source of the overage. And the sales tax ran a bit ahead of forecast values, and by more than pure inflation would suggest compared to the same time last year. So the general economy, as opposed to the world of finance, seems to be doing OK.
It's only one month, of course, but if this becomes a trend, it would mean no unpleasant surprises from the state for UC while the governor finishes out his term, i.e., until January. (There is always room for federal surprises, however.)
The July 2026 controller's cash report is at:
https://www.sco.ca.gov/Files-ARD/CASH/July2026StatementofGeneralFundCashReceiptsandDisbursements.pdf.
No comments:
Post a Comment