Wednesday, June 10, 2009

California State Revenue Data: May 2009

There was a rebound of sorts this month in California state revenue collection, with the state posting (pdf) a relatively small additional $1.2 billion revenue decline over FY 2007-2008. State revenue is now $13.6 billion lower than last year at this time, representing a 16.6% decline:

One indication of how out-of-whack California spending has become is the General Fund cash balance. According to the controller:

Through May, the State had total receipts of $75.2 billion and disbursements of $93.5 billion. The State ended last fiscal year with a deficit of $1.45 billion, and the combined current year deficit stands at $19.8 billion. Those deficits are being covered with $4.3 billion in Revenue Anticipation Notes (RANs), and $15.5 billion of internal borrowing.
You read correctly: the state is currently running a deficit of $19.8 billion, yet revenue is *only* down by $13.6 billion year-over-year. In other words, the state planned to spend $6.2 billion more this year than it collected last year through May. This budget crisis would have happened regardless of any Great Recession.

On the bright side, the controller left out his usual "hopeful signs" statements in this month's report.

**Update: Controller Chiang today reported to the Governator the state will be completely out of cash within 50 days:


Things are getting interesting.


patient renter said...

This ties in nicely with Mish's post the other day about CA spending in excess of growth. Key chart:

I'd love to see which spending areas accounted for this, growing in excess of inflation/population. Something tells me it wasn't necessarily the areas that have been heavily cut.

patient renter said...

BTW, This discovery should be news.

Max said...

Something tells me it wasn't necessarily the areas that have been heavily cut.

If anybody thinks the areas chosen for cuts (and increases) aren't politicized, think again.

BTW, This discovery should be news.

You saw it here first. :)

patient renter said...

Yea - That spending is politicized is just a fact of life. What bothers me is discussion over which cuts should be made without the context of which areas received increases during preceeding years.

Max said...

BTW, thanks for the shout out over on CR, man. Commenting over there is like shouting into a hurricane sometimes.

patient renter said...

"Commenting over there is like shouting into a hurricane sometimes"

Seriously! :)

Anonymous said...

@ comment 5 & 6 (Max and PR) Re: CR.

I can't even read the commentary over there anymore, it's gotten so awful.

There are plenty of news sources (but only CR brings the chart pron) but I can't wade through the sewage that the comments have become.

You're better humans than me for being able to continue to slog through it.

Max said...

I still dig most of the CR crew, although I do miss the 2006-2007 crew that bailed out. (They still post now and then, but not as frequently.) There's still plenty of snark to be had, and some good insight mixed in if you're willing to parse.