California tax revenues continue to pour in. A strong October pulled the state nearly $1 billion above budget projections for the fiscal year that began in July.
The non-partisan Legislative Analyst’s Office says October income and sales tax proceeds each came in more than $200 million higher than projections in the state budget Gov. Jerry Brown signed this summer. And even though corporate tax revenues fell a bit short, last month’s gains give California a budget surplus so far this fiscal year of just under $900 million.
The surplus suggests Brown was indeed conservative during budget negotiations. The governor insisted on using lower revenue estimates, while legislative Democrats had pushed for some limited additional spending.
The state controller’s office says California is now in a position to meet its own cash flow needs without any outside borrowing – for the first time in 15 years.