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.
At GROCO, we can help you prepare for your taxes any time of the year. We offer tax services, as well as accounting services, business valuations and several other services. Give us a call at 877-CPA-2006 or come in and see us at one of our Bay Area locations. Click here to learn more.