06.15.10: DOF Releases Revenue Report
By David Walrath
The Department of Finance (DOF) has released their May State General Fund Revenue Report. It is consistent with the positive cash revenues reported by the State Controller last week. Adjusting for a technical correction, the DOF report shows approximately $550 million in increased general fund revenues from the proceeds of taxes. DOF uses terms like “resurgent labor market” as part of their report.
All of this good news should be tempered with the realization that June revenues are estimated to be greater than $11 billion, while May revenues were estimated to be slightly more than $5 billion. The good news in May can be totally wiped out by bad news in June if the estimated more than $11 billion does not materialize. This happened when the good news of January, February and March was wiped out by the bad news in April.
I still expect there will not be a budget resolution until late July at the earliest, and probably early to mid-August while the Legislature waits to see state June revenues and whether the federal government will provide additional funding for schools and Medicaid.
