February State Revenue Was 10.6 Percent Short of Budget Projection, but Revenue Still Outpacing Last Year

California revenue of $6.52 billion for February fell short of projections in the governor's proposed 2017-18 budget by $772.7 million, or 10.6 percent, State Controller Betty Yee reported March 10.

Still, the state's total revenue of $73.28 billion at this point in the current fiscal year is significantly higher than the $70.96 billion collected at the same point in the prior fiscal year.

Recent month-to-month fluctuations have not developed a clear pattern, the controller said. January's revenue beat projections by 6.2 percent.

"The variance can often be as simple as one large payment due on the first of the month being recorded on the last day of the prior month," the Controller's Office said in a news release.

Personal income taxes, corporation taxes, and retail sales and use taxes all fell short of January's revised budget estimates for February, and only corporation taxes topped fiscal year-to-date projections in the governor's proposed 2017-18 budget.

For the first eight months of the fiscal year that began in July, total revenue of $73.28 billion is $663.9 million below last summer's budget estimates, and $888.1 million short of January's revised fiscal year-to-date predictions.

February's personal income tax revenue of $3.12 billion was shy of projections in the governor's proposed budget by $5.3 million (0.2 percent). In the current fiscal year, California has collected total personal income tax receipts of $50.97 billion, 0.9 percent below January's revised estimate.

Corporation tax receipts of $168.2 million for February were 35 percent short of assumptions in the proposed 2017-18 budget. Fiscal year-to-date corporation tax receipts of $3.82 billion are 3.3 percent above projections in the proposed budget.

February sales tax receipts of $3.06 billion missed expectations in the governor's proposed 2017-18 budget by $710.2 million (18.8 percent). For the fiscal year to date, sales tax receipts of $16.29 billion are $613.5 million (3.6 percent) below the revised estimates released in January.

The state ended February with unused borrowable resources of $27.44 billion, which was $3.27 billion more than predicted in the governor's proposed budget. Outstanding loans of $13.53 billion were $628.3 million higher than projected in early January. This loan balance consists of borrowing from the state's internal special funds.

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