Windfall $4+ billion in state receipts remains in state treasury through March

We have noted that over $4 billion beyond the governor’s budget estimates for the current fiscal year began showing up in the state treasury at around the time of the congressional fiscal cliff, etc., decision.  It appeared to come from upped withholding of state income taxes, perhaps from individuals taking capital gains at the end of 2012 to avoid possible tax hikes thereafter.  No one seems to know for sure but once the money arrived, it stayed, i.e., it didn’t seem to be some fluke of timing that subsequently reversed.  The latest state controller’s cash statement continues to show no reversal.  You can find it at:
http://www.sco.ca.gov/Files-ARD/CASH/fy1213_march.pdf

Of course, April will be a big month for income tax collections so we will get a better fix on what is happening a month from now.

More is better than less:

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