Controller releases December 2010 cash update

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

Receipts for the month were $562.5 million, or -5.8 percent, below estimates found in the 2010-11 State Budget.

“It is clear that next year’s budget deficit will not be solved by a surge in revenues,” said Chiang. “Rather than hope for a miracle, lawmakers must take the tough actions necessary to bring the budget back into balance.”

In the month of December, sales taxes were down $50.2 million (-2.3 percent), and personal income taxes came in $64.1 million above (1.3 percent) estimates.

Corporate taxes were down $529.9 million (-25.6 percent), indicating that the unexpected $263 million in November’s corporate tax collections were merely accelerated revenues.

The state faced a $20.8 billion cash deficit on Dec. 31.

That deficit was covered by $10.8 billion of internal borrowing – short term loans from special funds – and $10 billion of external borrowing.

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