State Controller responds to Newsom’s May Budget Revision, issues April Cash Report

“…contains challenging financial choices for the Governor and the Legislature…”- Malia Cohen

Fiscal year-to-date revenues still trend below expectations

SACRAMENTO — California State Controller Malia M. Cohen today, Friday, May 10, 2024, issued the following statement in response to Governor Gavin Newsom’s May budget revision:

“This morning, Governor Newsom released the May Revision to his proposed 2024-25 State Budget. The blueprint to address the remaining shortfall contains challenging financial choices for the Governor and the Legislature to maintain the state’s commitment to protecting essential programs and services and continuing critical investments in the state’s future.”

“As the state’s chief fiscal officer, it is my job to ensure the state has sufficient cash to pay our bills and to make certain that expenditures are transparent, accountable, and align with their intended purpose and expected outcomes. My office stands ready to assist both the Governor and the Legislature as they make their final push to finalize and approve the 2024-25 budget.”

In addition, Cohen today released her monthly cash report covering the state’s General Fund revenues, disbursements and actual cash balance for the fiscal year through April 30, 2024. The state ended April with $95.8 billion in unused borrowable resources, while fiscal year-to-date receipts continue below estimates contained in the 2024-25 Governor’s proposed budget.

The Governor’s Budget estimated that the state would collect nearly $16.3 billion in personal income taxes in April. As shown on the State Controller’s Office April 2024 Personal Income Tax Tracker webpage, the state exceeded the revenue target by approximately $150 million.

“With April personal income tax revenues just tracking with the most recent budget estimates, fiscal year-to-date revenues continue at lower-than-expected levels,” said Controller Cohen. “The high level of borrowable resources is due in large part to the $26 billion the state has prudently built up and reserved for rainy days and economic uncertainties. Maintaining enough cash to cushion against economic downturns has been one of California’s strengths in its credit ratings, and ensures the state will continue to meet its payment obligations.”

Fiscal year-to-date receipts through April were $169.8 billion, nearly $4.8 billion below the Governor’s Budget estimates, or 2.7 percent. The state’s cash position is $7.6 billion better than expected with disbursements of $184.9 billion for the fiscal year nearly $12.4 billion, or 6.3 percent, less than proposed budget projections.

As the chief fiscal officer of California, Controller Cohen is responsible for accountability and disbursement of the state’s financial resources. The Controller has independent auditing authority over government agencies that spend state funds. She is a member of numerous financing authorities, and fiscal and financial oversight entities including the Franchise Tax Board. She also serves on the boards for the nation’s two largest public pension funds. Follow the Controller on Twitter at @CAController and on Facebook at California State Controller’s Office.

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CA Capitol bldg Budget Deficit & seals

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