Capitol Alert: State tax revenue continues to outpace estimates
04/15/2014 11:15 AM
04/15/2014 11:22 AM
State tax revenue continued to outpace budget estimates last month, with year-to-date revenue now $1.4 billion more than the Brown administration projected, the state Department of Finance reported Tuesday.
The report is the last benchmark ahead of April, a heavy month for income tax revenue. Last month, personal income tax revenues to the general fund came in $274 million above estimates, while corporate tax revenues exceeded estimates by $110 million, according to the Department of Finance.
Sales and use tax receipts were $12 million below the forecast for the month of $1.6 billion.
If revenue remains higher than projected in coming months, Gov. Jerry Brown is likely to face increased pressure from Democratic lawmakers and social service advocates to free up spending. Brown has proposed a $154.9 billion spending plan for next fiscal year that includes modest increases for social services and schools, but also billions of dollars to address long-term debt. A surplus also makes it likely the administration would implement contract provisions to increase pay for state employees.
The governor will release a revised budget proposal in May.
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