Cash News (Or Really Non-News)

The state controller has issued his cash statement for the first 5 months of the fiscal year (July-November).  Revenues for the general fund are about what was projected in the state budget passed last June.  Personal income tax receipts are running ahead of forecast (which probably means the rich are getting richer).  Sales tax receipts are a bit behind (not so good retail performance).  But really there is no news.

Receipts are highly seasonal due to dates when estimated taxes are due.  At the moment, the reserve in the general fund is negative to the tune of almost $20 billion which might seem alarming except that last year at this time it was almost minus $25 billion.  Presumably, the seasonal influx of receipts will undo this negativity as t he year progresses.  When the reserve is negative, the controller does a mix of internal borrowing from other funds outside the general fund and external borrowing from Wall Street.

Not to worry.  It will all work out:

The controller’s statement is at http://sco.ca.gov/Files-ARD/CASH/fy1314_december.pdf

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