Capitol Alert
The latest on California politics and government
December 8, 2011

Some good budget news, for once. California beat its November revenue projections by $497.7 million, or 8.9 percent, state Controller John Chiang reported today.

That comes just days before the Department of Finance is slated to announce how much money it believes California will receive for the 2011-12 fiscal year, which will ultimately decide how much the state has to cut starting in January.

Through the first five months of the fiscal year, California is $1 billion short of its revenue forecast, or 3.4 percent, better than the $1.5 billion revenue gap Chiang reported last month.

Personal income taxes drove the November boost. The state took in $531.4 million, or 19.6 percent, more in income tax revenues than expected. Sales taxes were on target, while corporate taxes were $57.9 million, or 53.6 percent, higher than expected.

But the state has also spent $1.95 billion more than projected through November, Chiang reported.

“While November’s totals came in 9 percent above projections, they did not erase the fact that we are still running $1 billion behind in revenues and $2 billion ahead in expenditures,” Chiang said in a release. “Regardless of whether midyear cuts are enacted next week, the Legislature faces a tremendous fiscal challenge when it returns to session next month.”

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