Published June 21st, 2010
With nine days left in the month, state budget writers are waiting to see if June revenue projections hit their mark.
In his revised budget in May, Gov. Arnold Schwarzenegger estimated more than $5.5 billion in income tax receipts and $2.1 billion in bank and corporation tax payments for June.
If June payments come in above estimates, the state’s $17.9 billion budget hole shrinks. Below estimates, it deepens.
Through June 21, the Franchise Tax Board reports $2.8 billion in income tax payments and $1.9 billion in bank and corporations tax receipts.
The employment Development Department to which businesses send withholding – the taxes subtracted from employee paychecks – has received $2.3 billion — $505 million below projections by Schwarzenegger’s Department of Finance.
Payments of both income taxes and bank and corporations taxes spiked around June 15, the quarterly payment deadline. Between June 14 and June 18, the tax board collected $2.3 billion of the month’s income tax payments to date. On June 16, $1.2 billion of the month’s total bank and corporations tax receipts were logged.
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