California's revenue stream continues to flow below forecasts, as the state's Department of Finance reports June revenues that fell $306 million below expectations.
For the fiscal year to date, the state's revenues are $829 million below forecast.
The Department reports that sales and use taxes took the biggest hit, with receipts $315 million below expectations, a decline of 6.9 percent from the previous year. As the Department writes, "At this time it is not known if the swing in June is a precursor of underlying weakness in taxable sales."
The strong point in the month's revenues came from personal income taxes, which came in $151 million above forecast. Corporate tax revenues came in about as expected and revenues from insurance, estate, alcoholic beverage, and tobacco taxes came in $119 million below the $480 million forecasted.