News Column

California Seeing Green in Budget Surplus

March 11, 2013

Staff -- HispanicBusiness

Downtown Los Angeles (file photo)
Downtown Los Angeles (file photo)

St. Patrick's Day may be this weekend but the state of California is already seeing plenty of green.

California is $4.5 billion ahead of tax projections, the California State Controller announced on Monday. While it might be time to celebrate, Controller John Chiang says it's still too early to break out the green beer.

"While the results so far for the first two months of the calendar 2013 are encouraging, it is still time to be cautious," Chang wrote in a Summary Analysis. "The economy could lose momentum, which could adversely impact tax receipts even with the effect of higher tax rates. It will also be critical that spending remain restrained to keep the State on a track toward fiscal health."

Total revenues were $899.6 million in February, up 20.5 percent when compared to 2012. Sales tax collected by the state was up 23.4 percent ($567.3 million), income tax increased 16.1 percent ($267.7 million) and corporate rose 70.1 percent ($59.5 million).

"Healthy revenues, along with recovering home prices, a steep drop in foreclosures, and increased car sales are harbingers of a California economy that is starting to warm up," Chang said in a statement.

The state ended the last fiscal year with a cash deficit of $9.6 billion. As of Feb. 28, that cash deficit totaled $16.2 billion and was covered with $6.2 billion of internal borrowing (temporary loans from special funds), and $10 billion of external borrowing, the Controller's Office reported.

California will have a better idea of its financial health come April, when final income tax payments are due. The state relies heavily on income taxes for its revenues.

Related: Top 20 Hispanic-owned Companies in California 2012

The surplus revenues are good news to the companies on the HispanicBusiness 500 index. Those companies produced revenues of $2.05 billion in 2011, up slightly from the $2 billion they produced in 2010.

The California top 20 on the HispanicBusiness ranking employed 8,610 people last year as well, up 1.6 percent from the year before, when they employed 8,476. Ruiz Foods once again topped the list in California with revenues of $510 million.

Source: (c) 2013. All rights reserved.

Story Tools Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters