| July 10
July 10 California has ended its fiscal year
with cash left over in its general fund for the first time since
State Controller John Chiang said on Thursday that
California wrapped up June with a positive cash balance of $1.9
billion. This suggests the state has reached a stable financial
foothold with enough money in its day-to-day operations budget
to meet obligations without borrowing from other state funds or
from Wall Street.
The cash-positive balance is another sign of fiscal recovery
after seven years of "record-high borrowing just to pay our
everyday bills," Chiang said in a news release. But he added,
"We should remain laser-focused on paying down the Wall of Debt,
reversing the many accounting gimmicks to which we've become
addicted and keeping the State as liquid as possible to avoid
experiencing the payment delays and IOUs that plagued our State
during the Great Recession."
During the fiscal year ended June 30, the state controller's
office collected $101.6 billion in revenue, or 2.1 percent more
than Governor Jerry Brown had projected in his January budget
release. Personal income taxes totaled $66.2 billion, or 2.6
percent higher than expected. Corporate taxes hit $8.5 billion,
9.3 percent higher, and retail sales and use taxes reached $22.2
billion, 1.8 percent more than expected.
A state particularly susceptible to swings in the economy,
California has enjoyed the U.S. stock market's five-year surge.
But "another down cycle in the economy is inevitable," Chiang
said. "We should be vigilant about preparing for that day while
we celebrate the great progress we've made to date."
Last month, in another positive reflection of the state's
finances, Moody's Investors Service upgraded California's
general obligation debt to "Aa3" from "A1," citing the state's
improving financial position and employment growth.
(Reporting by Robin Respaut in Riverside, Calif.; editing by