SACRAMENTO – State Controller John Chiang has released his monthly report covering California’s cash balance, receipts and disbursements in February.

The month’s receipts rose above the governor’s 2010-11 budget estimates by $480 million, or 8.7 percent.

“Revenues came in above projections for the third month in a row, continuing a positive trend that shows California is on the road to recovering from the recession. Given February’s numbers and recent action from the Legislature to improve the state’s cash flow, Californians should expect to receive their hard-earned tax refunds on time,” Chiang said. “While the worst may be behind us, we still face cash challenges later in the summer absent enactment of further credible and sustainable budget and cash solutions.”

Earlier this month, the Legislature enacted a package of payment deferrals – impacting largely state, local government, and school operations – to avoid cash shortfalls projected over the next 15 months.

Specifically, the bill provides up to $5 billion of additional liquidity during the weakest points in the State’s cash position.

Earlier projections showed the state’s cash position falling below safe levels on March 30. The controller has updated his cash-flow outlook to reflect February’s receipts as well as the Legislature’s payment deferrals.

Year-to-date receipts are ahead of budget estimates by $1.94 billion, or 3.9 percent. The state’s cash position was $2.15 billion ahead of projected levels on Feb. 28.

The state started the fiscal year with an $11.9 billion cash deficit in the General Fund, which grew to $22.3 billion by Feb. 28.

Those deficits are being covered with a combination of $13.5 billion of internal borrowing from special funds and $8.8 billion in short-term Revenue Anticipation Notes.

February 2010’s financial statement and the summary analysis can found on the controller’s Web site at www.sco.ca.gov .