SAN FRANCISCO Feb 14 California's revenue in
January came in $5.099 billion above forecast in the governor's
state budget plan, propelled by a surge in revenue from personal
income tax collections following voter-approved income tax
increases in November, the state's finance department said on
Personal income tax revenue was $4.951 billion above
projection, helping to put the state's total fiscal-year-to-date
revenue $5.112 billion above expectation, the department said in
a report. California's fiscal year started in July.
In addition to tax liabilities paid in January instead of
April due to state tax increases, taxpayers expecting federal
tax increases appear to have shifted income from this year to
2012, helping boost estimated tax payments last month.
Voters in November approved Governor Jerry Brown's tax
measure to raise revenue as a way to prevent spending cuts to
education programs in the near term and to bolster the state's
deficit-plagued finances over the longer term.
Brown is counting on new revenue raised by the measure,
which temporarily boosts the state's sales tax and income tax
rates for affluent Californians. At the same time, the governor
is banking on fellow Democrats who control the legislature to
restrain spending to help the state budget swing to a surplus.
Encouraged by California's improving finances and
expectations of balanced budgets, Standard & Poor's last month
upgraded its rating on $73.1 billion of the state's general
obligation bonds by one notch to A from A-minus. The action
marked S&P's first upgrade to the debt since 2006.