BOE Chairman Jerome E. Horton Encouraged by California’s Fiscal Boom State ends fiscal year in the black
The State ends its fiscal year $2 billion richer than it thought, according to the State Controller’s Office.
State revenue for the full year is up 2 percent, but the economy appears to be growing faster than anticipated with a 10 percent revenue jump in just one month.
“This is great news,” said Board of Equalization Chairman Jerome E. Horton. “What I like most is that not only did we increase jobs, but the recovery appears to be broad based.”
From the Board of Equalization’s perspective, June sales and use tax revenues exceeded the Department of Finance May Revision estimate by $70.1 million, and the June 2012 actual revenues by $268.8 million. For fiscal year 2012-13, preliminary taxable sales revenues were 3.3 percent above those of fiscal year 2011-12.
Car sales are a major reason for the increase in sales and use tax revenues. California new car and light truck sales were up 12.6 percent for January through March of 2013, compared to the same period in 2012. So far in 2013, increases in jobs, income, and home prices have resulted in improved consumer confidence and increased sales. In addition, residential building permits are up 88 percent from January through May compared to the same period in 2012, resulting in increased sales of lumber and other building materials.
The Department of Finance has forecast continued economic growth in the years ahead. With a stronger economy, they expect sales and use tax revenues to increase an average of 7.6 percent per year for the next four fiscal years.