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California’s budget finished 2013-14 in the black

By Josh Richman
Thursday, July 10th, 2014 at 10:23 am in John Chiang, state budget.

California finished its fiscal year in the black for the first time since 2007, state Controller John Chiang confirmed Thursday.

California in the blackThat means the state had funds available to meet all of its payment obligations without needing to borrow from Wall Street or from the $23.8 billion available in its more than 700 internal special funds and accounts.

“While this is welcome news after seven years of record-high borrowing just to pay our everyday bills, we still have much work to do,” Chiang said in a news release. “We should remain laser-focused on paying down the Wall of Debt, reversing the many accounting gimmicks to which we’ve become addicted and keeping the State as liquid as possible to avoid experiencing the payment delays and IOUs that plagued our State during the Great Recession.”

The economy inevitably will decline again sooner or later, he noted. “We should be vigilant about preparing for that day while we celebrate the great progress we’ve made to date.”

Chiang’s report found the General Fund had $1.9 billion in cash on June 30, marking the first time it has ended the fiscal year in the black since 2007, when it ended the year with $2.5 billion in the bank.

For the 2013-14 fiscal year, revenues came in at $101.6 billion, or $2.1 billion (2.1 percent) more than projected in the Governor’s budget released in January. Personal income taxes totaled $66.2 billion, coming in $1.7 billion above the January estimates (2.6 percent). Corporate taxes totaled $8.5 billion, which was $725 million more than expected (9.3 percent). Retail sales and use taxes came in at $22.2 billion, or $415 million under (1.8 percent) the estimates.

Revenues for June alone totaled $14.8 billion, beating estimates in the 2014-15 Governor’s Budget by $304 million (2.1 percent). Income tax collections for the month of June came in $635 million (7.4 percent) above estimates. Corporate taxes topped estimates by $289 million (13.2 percent). Sales taxes came in short of estimates by $265.8 million (11.6 percent).

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  • JohnW

    Never mind that being “in the black” depends on accounting gimmicks galore; temporary upper income tax rates that are the highest in the country and have an expiration date; a surge in capital gains tax revenue; not paying into the teacher’s pension fund; massive debt and unfunded retirement benefits; underfunding higher education; deferred maintenance of infrastructure; etc. All this means is that we had enough cash to make the minimum payments on everything without taking on even more debt.

  • Elwood

    (sarcasm) Congratulations to Governor Brown and the legislature! (end sarcasm).