Controller: California revenues lag

April 11, 2012

By John Seiler

Rosy Scenario just checked out of the Hotel California.

As Chriss Street reported here a month ago, California’s revenues have been plunging.

Controller John Chiang just confirmed that in this announcement from his office:

SACRAMENTO — State Controller John Chiang today released his monthly report covering California’s cash balance, receipts and disbursements in March, showing monthly revenues came in $233.5 million below (-4.2 percent) the latest estimates contained in the Governor’s proposed 2012-13 Budget.

“While revenues continue to fall short, the months ahead will be far more important to the State’s finances,” said Chiang.  “More than 35 percent of all revenues are expected in the next three months,  making this the most important period for tax collection in the fiscal year.”

Most of the shortfall was caused by corporate tax receipts, which came in $125.8 million below (-8.2 percent) projections. Sales taxes were also down by $25.7 million (-1.7 percent). Personal income taxes were down $41.4 million (-1.8 percent), but this shortfall was caused by taxpayer refunds going out faster than expected.

The State ended last fiscal year with a cash deficit of $8.2 billion. The combined current-year cash deficit stands at $21.5 billion.  Those deficits are being covered with $15.1 billion of internal borrowing (temporary loans from special funds) and $6.4 billion of external borrowing.

It’s good to know that one Democrat can count.

Maybe if California stopped treating its taxpayers as slaves tied to a plow, businesses would flourish here, the tax base would be expanded and — in the end — more revenue actually would be generated.

But Gov. Jerry Brown, the Democratic-controlled state Legislature and the government-employee unions that control them would rather work taxpayers to death through higher taxation.

Brown’s May Revise to his January budget proposal is about three weeks away. It’ll be another fantasy job that could be used by George Lucas as a plot for another “Star Wars” sequel.