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CDCAN REPORT #164-2011: State Controller Chiang reports August revenues $134.9 million above budget

Total revenues to date however still lagging behind budget projections.
Article | | By Marty Omoto

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State Controller Reports August State Revenues $134.9 Million Above Budget Projections - Fears of "Trigger Cuts" Remain
Total Revenues For the Year So Far Still Lagging Below Budget Projections - September Revenues Will Be Key Whether State Budget "Trigger Cuts" May Be Pulled Says Chiang

SACRAMENTO, CALIF (CDCAN)  [Last updated 09/09/2011 4:23 PM] -  State Controller John Chiang today released his monthly report covering California's revenues, including cash balance, receipts and disbursements for August, showing revenues came in $134.9 million above (2.1%) projections from the recently passed 2011-2012 State Budget - though fears that State budget "trigger cuts" that impact a wide range of programs including developmental services and In-Home Supportive Servicecs, remain because the revenue numbers are soft.

Income taxes were above projections by $127.4 million (4.1%)  in August.  Sales taxes were up $8.6 million (0.3%), and corporate taxes were up $46.7 million (51.4%) in the same month.

While the news is welcomed by policymakers and advocates after the report last month that showed July revenues coming in far below the State budget numbers, the total State General fund revenues - with the August revenue numbers added in - are still behind the 2011-2012 State Budget's projections by $403.8 million.

The level of revenues coming into the State is critical whether or not a series of "trigger cuts" are pulled in December, that would reduce State general fund spending in a wide range of programs and services, including those impacting children and adults with disabilities, mental health needs, the blind and seniors, low income families, and children in education programs.

Chiang Warns That September Revenues Will Be Critical

"While August revenues did not fully offset last month's shortfall, we are fortunate that the recent market upheaval, sluggish job growth and continued weakness in key segments of our economy did not lead to a third straight month of slipping revenues," said Chiang.  "We now look to September and its $7.6 billion of projected revenue – making it the largest cash month between now and December 15, when a decision must be made on whether to pull the trigger to cut more program funding."

Chiang also reported that while sales taxes initially looked more robust in August, it was discovered that the Board of Equalization mistakenly allocated $343 million of local government dollars to the State.

The 2011-2012 State Budget enacted a major shift or "realignment" of state responsibilities and revenues to local criminal justice, mental health, and social service programs. The $343 million of sales tax should have been allocated locally as part of the new realignment program, according to the State Controller who said that the error will be corrected this month.

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Many, many thanks to all the organizations and individuals for their continued support that make these reports and other CDCAN efforts possible. [Note: As of June 26th due to major problem with my computer and email, I have to use this old format of the CDCAN Reports that unfortunately does not have the list of people and organizations who have generously contributed and supported CDCAN in the past year and in recent weeks and months. I should have computer problem repaired sometime this week hopefully - Marty Omoto]

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MANY, MANY THANKS FOR CONTINUED SUPPORT THAT MAKE THESE REPORTS, ALERTS, TOWNHALLS POSSIBLE TO: WESTSIDE REGIONAL CENTER, LANTERMAN REGIONAL CENTER, CALIFORNIA ASSOCIATION OF ADULT DAY HEALTH CENTERS, VENTURA COUNTY AUTISM SOCIETY, RESPITE, INC., LOS ANGELES RESIDENTIAL COMMUNITY SERVING DEVELOPMENTALLY DISABLED ADULTS LARC RANCH, FEAT OF SACRAMENTO, EASTER SEALS OF SOUTHERN CALIFORNIA, EMMANUEL AND FAMILY, PEOPLE FIRST OF SAN LUIS OBISPO, BOB BENSON, the Pacific Homecare Services, Toward Maximum Independence, Inc (TMI), Friends of Children with Special Needs, Southside Arts Center, San Francisco Bay Area Autism Society of America, Hope Services in San Jose, FEAT of Sacramento (Families for Early Autism Treatment), Sacramento Gray Panthers, Bill Wong, Tri-Counties Regional Center, Life Steps, Parents Helping Parents, Work Training, Foothill Autism Alliance, Arc Contra Costa, Pause4Kids, Training Toward Self Reliance, Californians for Disability Rights, Inc (CDR) including CDR chapters, CHANCE Inc, Strategies To Empower People (STEP), Harbor Regional Center, Asian American parents groups, Resources for Independent Living and many other Independent Living Centers, several regional centers, People First chapters, IHSS workers, other self advocacy and family support groups, developmental center families, adoption assistance program families and children, and others across California.

As of January 13, 2012 - some friends donated a new laptop computer which will soon be up and running. Thanks so much - using a lap top with several keys missing or not working makes typing reports very difficult! Many thanks to Anna and Albert Wang.