Revenues continue to drop, state reports

California’s total general fund revenue was down $237 million, or 3.6 percent, from estimates in the recently amended 2009-10 Budget Act, state Controller John Chiang said when he released his monthly report detailing the state’s cash balance, receipts and disbursements for August 2009.

“My office’s stress-testing of the budget anticipated some revenue loss, so the state’s cash outlook has not changed,” Chaing said last Thursday. “While those revenues can be made up in the months ahead, I am concerned that they constitute nearly one half of the state’s $500 million budget reserve. What is more troubling to me is that consumer activity and unemployment continue to be a drag on California’s recovery.”

In August, the state issued $862 million in registered warrants, commonly known as IOUs, and delayed another $471 million in scheduled payments. After accounting for IOUs and payment delays, total state disbursements for the year to date were still $1 billion below projections in the Budget Act.

August personal income tax revenues were $247 million below (-8.9 percent) estimates and sales taxes were down $185 million (-5.5 percent). Corporate taxes came in above projections by $27.3 million (22.6 percent).

The state started the fiscal year on July 1 with an $11.9 billion cash deficit, which grew to $12.6 billion by Aug. 31, Chaing’s office reported. Without IOUs and payment delays in July and August, the cash deficit would have grown to $16 billion.

August 2009’s financial statement and the summary analysis, along with more information about the state’s cash crisis may be found on the controller’s Website at www.sco.ca.gov.