Revenue Estimates

As 2007 progressed, economic problems had an increasingly negative effect on California's revenue collections. Baseline revenues in 2007-08 are now expected to total $96.4 billion--$4.8 billion below the forecast that was used for enactment of the 2007 Budget. For 2008-09, baseline revenues are expected to grow to $99.1 billion, a 2.8-percent increase from 2007-08. With the Administration's revenue proposals for addressing the budget problem, revenues are estimated to be $101.2 billion in the current year and $102.9 billion in budget year.


MAJOR REVENUE PROPOSALS
  • Sell $3.3 billion of Economic Recovery Bonds in the current year.
  • Transfer $1.5 billion from the Budget Stabilization Account to the General Fund in the current year and eliminate the $1.5 billion transfer to the Budget Stabilization Account in the budget year.
  • Accrual of $2.0 billion in June personal income tax and corporate tax in 2008-09.
  • Reinstate the 12-month use tax requirement for vehicles, vessels, and aircraft.
  • Augment the Franchise Tax Board's budget in order to help address the tax gap, prevent fraudulent refund claims, and address growth in the audit workload.
  • Augment the Board of Equalization's budget to help improve tax compliance.
Figure REV-01 summarizes the forecast for 2007-08 and 2008-09 and provides a preliminary report of actual receipts for 2006-07, compared to the 2007 Budget Act forecast. The Governor's Budget forecast was prepared in early December, before individuals and corporations made final withholding and estimated payments for the 2007 tax year, and before consumers completed their December purchases. The strength of this late December and early January activity can have a large impact on state revenues. This forecast will be revised in early May when these data and April income tax receipts are available.

The state's tax system is outlined in Figure REV-02. Tax collections per capita and per $100 of personal income are displayed in Schedule 2 in the Appendix. The revenue generated from each state tax from 1970-71 through 2008-09 is displayed in Schedule 3 in the Appendix.
CHAPTER HIGHLIGHTS for Revenue Estimates Back to Top

 General Fund Revenue
 Special Fund Revenue
PRINTABLE BUDGET DOCUMENTS Back to Top
Budget Summary - Revenue Estimates (pdf * - 540K) -
Provides this entire Revenue Estimates Chapter in pdf format.

SCHEDULE 2 - Summary of State Tax Collections (pdf * - 113K) -
State Tax Collections per capita and per $100 of personal income.

SCHEDULE 3 - Comparative Yield of State Taxes (pdf * - 116K) -
Revenues for Major State Taxes from 1970-71 through 2008-09.

SCHEDULE 8 - Comparative Statement of Revenues (pdf * - 18K) -
Detail of General and special fund revenues by source for the past, current, and budget years within the following categories: (1) major taxes and licenses, (2) minor revenues, and (3) transfers and loans.