June 11 (Reuters) - For the first time in six months, the state of California’s revenues in May fell short, by $389.1 million, or 5.5 percent, of Governor Jerry Brown’s proposed budget.
The state’s revenues have been growing strongly this year and still exceed the governor’s expectations by $1.8 billion, or 2.1 percent, year-to-date.
“The overall budgetary health remains stable and there is no threat to the state’s ability to pay its bills on time and in full,” state Controller John Chiang said in an announcement on Tuesday. “As lawmakers finalize their spending decisions in the coming days, my office urges fiscal restraint with an eye toward slashing the billions of dollars in debt accrued during the great recession.”
In May, California collected $6.7 billion in revenues. Sales, income and corporate taxes all came in lower than expected for the month.
Cash reserves were $4.9 billion over projections. But the state still suffers from a cash deficit of $8.5 billion, which is being covered by internal and external borrowing.
California’s fiscal year ends on June 30. (Reporting By Robin Respaut; Editing by Peter Galloway)