Tax revenue to California’s general fund is running more than $1 billion above estimates since the July 1 start of the fiscal year, the state said Monday, as Gov. Jerry Brown prepares for another round of budget talks next year.
Personal income and corporation taxes were both up over estimates, while sales and use tax was down about 6.6 percent below expectations, according to the administration’s monthly cash report.
The report comes about two months before Brown releases his January budget proposal, kicking off annual budget negotiations at the Capitol. California’s improving budget outlook has left Brown, a relatively moderate Democrat, to tussle over spending levels with social service advocates and more liberal members of the Legislature’s Democratic majority.
The administration said in its monthly cash report that, for the fiscal year to date, tax revenues are just more than $1 billion above expected revenues of about $28 billion. In October, personal income tax revenue to the general fund was $358 million above projections.
Call David Siders, Bee Capitol Bureau, (916) 321-1215. Follow him on Twitter @davidsiders.