General information

State Controller’s Office Releases July Cash Update

The State Controller’s Office released its monthly report last Monday detailing California’s cash balance, receipts and disbursements for July 2013, the beginning of the state’s new fiscal year. Revenues for the month totaled $4.8 billion, which was $300 million below (6 percent) 2013-2014 budget estimates.According to the controller “…July is often the State’s least significant revenue collection month.” The report shows personal income tax revenues $273.7 million below (7 percent) budget estimates and corporate income taxes at $10.1 million above (4.9 percent) projections. Sales tax receipts in July exceeded expectations by $7.1 million (0.9 percent).

The state ended the month of July with a cash deficit of $10.9 billion and the deficit was covered by borrowing from other funds internally. External short-term borrowing for this fiscal year is estimated at $5.5 billion, which will be the smallest cash-flow borrowed in the last four years. External borrowing in the last four years was in the range of $6.4 billion to $10 billion. This borrowing is accomplished through a Revenue Anticipation Note and generally repaid in May or June.

If you have any questions on this issue, please do not hesitate to contact Kevin Gould, CBA’s senior vice president and director of state government relations, at kgould@calbankers.com or (916) 438-4410.

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