January 7, 2014

State income tax revenues stay up, beat projections in December



California income tax collections came in $1.6 billion, or 20 percent, above projections in December, the Legislative Analyst's Office said Tuesday, just days before the Brown administration releases its annual spending plan.

December is a significant month for personal income tax payments by California's wealthiest taxpayers. Including that month, the nonpartisan analyst's office said revenue from personal income and corporation taxes were running $2.1 billion above projections so far this budget year.

Gov. Jerry Brown is scheduled to release his annual budget proposal at the Capitol on Friday, before traveling to San Diego and Los Angeles to promote it in big media markets later in the day.

The Democratic governor has approached improving budget indicators with caution, urging lawmakers to bolster reserves. In his budget plan, he is expected to support a proposal by Assembly Speaker John A. Pérez to put a rainy-day fund constitutional amendment on the November ballot.

The Legislative Analyst's Office projected last fall that the state could post a $5.6 billion surplus by June 2015, with annual surpluses reaching $8.3 billion by the 2016-17 budget year.

http://blogs.sacbee.com/capitolalert...-december.html

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