SACRAMENTO – July state revenues came in below projections in the 2016-17 Budget Act approved the previous month by $591.3 million, or 9.8 percent, with all three of the state’s main revenue sources falling short of expectations for the first month of the fiscal year, State Controller Betty T. Yee reported today.
 
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 percent, or $213.5 million, 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 percent.

Corporation tax receipts of $227.3 million were $49.5 million below estimates, or 17.9 percent.
 
“The declines in all three revenue categories may be attributable to the slower rate of job growth when compared to 2015,” said Controller Yee, the state’s chief fiscal officer. “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.”
 
Total disbursements of $10.42 billion were $33.2 million lower than projected.

he 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.
 
For more details, read the monthly cash report.