Although I continue to remain deeply concerned about
California’s economic recovery, I’m pleased to report that our
state’s budget picture—at least when it comes to sales tax—isn’t
quite as bleak as it might seem.
On Tuesday, the State Controller reported that
sales and use tax general fund revenues for the month of July were
$977.6 million, 12.5% below the Department of Finance projection of
However, BOE actually received $1.64 billion in July, more than
half a billion dollars above the budget projection cited by the
The competing revenue numbers are the result of two different
methods of accounting. As required by statute, the Controller looks
at “money in the bank,” which does not include pending deposits.
BOE numbers reflect “money in the door,” which includes all
payments—including those received but not yet deposited.
The last few days of July saw more than $600 million in sales
tax revenue received by BOE. These dollars were not included in the
Controller’s report because they had not yet been deposited into
state coffers. Retail… Read More