globaleconomicanalysis.blogspot.ca / By Mike “Mish” Shedlock / Monday, December 10, 2012 10:04 AM
California revenue is up from a year ago. Unfortunately, California revenue is not up as much as expected, while spending is up way more than expected.
Please consider California Finances in November 2012 by state controller John Chiang.
November’s tax receipts fell 10.8% short of expectations contained in the 2012-2013 State Budget, although they were above the year-ago level. Total revenues year to date are now 2.6% less than anticipated at this time, with shortfalls among all of the major sources.
Expenditures are 4.9% above estimates contained in the Budget, with assistance to local governments driving the overage.
Total revenues were $806.8 million below projections in November, with corporate taxes accounting for a significant amount of this divergence. Compared with a year ago, total revenues year to date were up by 2.5%, with an impressive gain in income taxes offset-ting shortfalls in the other revenue sources.
The difference between actual and estimated numbers is larger on the spending side. For the first five months of the fiscal year spanning July through November, actual disbursements exceeded projections by $2.2 billion, or 4.9%. Education and health care accounted for the majority of the difference.