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California Revenue $440 Million Above Estimates, Controller Says

July 11 (Bloomberg) -- California, the most populous U.S. state, collected 3.7 percent more revenue in June than projected, a gain of $440.5 million, as the economy expanded, the controller reported.

Personal income taxes were 6.8 percent, or $410 million, higher than projected in May, Controller John Chiang said in a statement. Sales taxes were 0.8 percent above estimates, or $21.8 million, while corporate taxes were up 7.2 percent, or $156 million.

Still, June revenue was $350 million less than the $1.2 billion in additional revenue on which Governor Jerry Brown and Democrats based their new budget, Chiang said. That $86 billion spending plan signed into law June 30 filled what remained of a $26 billion deficit with $12 billion in spending cuts and a forecast of an equal amount in higher tax revenue from a recovering economy.

“The latest report shows many positive signs,” Chiang said in the statement. “The state is spending less than it took in, we are borrowing less cash, and all three major sources of revenue show signs of growth. But the success of the newly adopted state budget will depend on continued economic expansion throughout the year.”

The budget plan includes $2.5 billion in automatic additional cuts that will be triggered in January if receipts fall short.

To contact the reporters on this story: Michael B. Marois in Sacramento at mmarois@bloomberg.net;

To contact the editor responsible for this story: Mark Tannenbaum at mtannen@bloomberg.net

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