Good news for California coffers

June revenues coming into the state were $440.5 million above May estimates. "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," said California Controller John Chiang. Of particular note are personal income tax revenues, which came in above estimates by $410.5 million (6.8 percent). Some of this might have been the result of unexpected income at the higher end (especially in Silicon Valley). But the success of the newly-adopted budget will depend on revenues to be waaay higher than initially projected, and that will require "continued economic expansion throughout the year," Chiang said. Otherwise, Gov. Jerry Brown will be stuck making all kinds of additional cuts. From the Controller's report:

Despite the consternation that the recovery's slow pace has created in policy circles and the media, California continues to move forward. The state ended the 2010-11 fiscal year with nearly $1.8 billion more in receipts than expenditures. This is stronger than was anticipated in the May Revision estimates, but slightly lower than anticipated in the newly enacted budget, which counted on $1.2 billion in additional revenue between May and June 2011 ($849 million in additional revenue was collected). Still, revenues have certainly exhibited a consistent upswing. Compared to 2009-10, General Fund Revenues were more than $6.6 billion higher by the end of this fiscal year.