What Happened to California’s Tax Revenue in May?
Where has all of California’s money gone? Ok, so the state isn’t bankrupt or anything like that, but according to recent reports, the state’s tax revenues fell short by 5.5 percent in the month of May. That marks the first time in six months that California’s revenues have not reached expectations.
In fact, that 5.5 percent shortfall equaled $389.1 million dollars in revenue. According to reports, the state collected a total of $6.7 billion in revenues, but income, sales and corporate taxes all failed to meet expectations. Despite the lower than expected numbers, the state is still doing well overall and has exceeded expectations by $1.8 billion so far in 2014.
Meantime, cash reserves are also very healthy overall for the state, coming in at $4.9 billion more than they were projected. However, the news is not all good for the state, as there is still a cash deficit of $8.5 billion. California is covering that deficit by borrowing both internally and externally.
According to reports, the state’s Controller says that California is doing well and that it will not have any problem paying it’s bills. It’s always good news when the government can pay its bills on time. However, it’s not so great when the government relies on the wealthy to foot a large portion of the bill.
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Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com. GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.
Alan L. Olsen, CPA, Wikipedia Bio
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