March 17, 2008

February General Fund Revenues Reported

The California Department of Finance reported the State General Fund revenues for February. The report reflects the uncertainty in the California economy. While personal income tax withholding receipts were greater than estimated, sales tax revenues were less.

The general comment is that the January and February combined state revenues are on track with the Governor’s January budget estimates. April revenues, used for the May Revision, are significantly greater than the January and February revenue estimates. Consequently, if the current trend continues there might not be a bad surprise at the May Revision. Nobody so far is expecting anything better than no additional bad news.

~Dave Walrath

dwalrath@m-w-h.com