LOS ANGELES — California began the fiscal year with a big miss on its revenue projections.
State revenue was 9.8% below budget projections in July, the first month of fiscal 2017, according to State Controller Betty Yee.
She attributed the decline in revenues to slower job growth as compared to the previous year.
July revenue was $591.3 million below projections in the 2016-17 Budget Act approved in June, Yee said in her monthly cash report.
This is the third month in a row that revenue collections have missed the mark.
All three of the state's main revenue sources fell short of expectations for the first month of the year, according to the report.
"The declines in all three revenue categories may be attributable to the slower rate of job growth when compared to 2015," Yee said in a statement. "However, we should exercise caution by further examining and understanding the possible causes of the revenue shortfalls, as a one-month snapshot is not indicative of an economic trend."
Retail sales and use taxes missed the mark by the widest margin.
Estimated at $907.9 million, they came in at just $694.5 million—23.5% lower.
Personal income tax receipts of $4.39 billion were $323.3 million lower than anticipated in the Budget Act, missing estimates by 6.9%. Corporation tax receipts of $227.3 million were $49.5 million below estimates, or 17.9%.
Total disbursements of $10.42 billion were $33.2 million lower than projected. The state ended the month of July with unused borrowable resources of $30.37 billion, which was $1.38 billion more than expected in the 2016-17 Budget Act. Outstanding loans of $5.63 billion were $545.5 million higher than projected. This loan balance consists of borrowing from the state's internal special funds.
