July Revenue Uptick a Ray of Sunshine for California Budget, but Officials Remain Cautious

Corporate and personal income tax collections rose, with $805 million in corporate taxes coming in on one day alone.

California Gov. Gavin Newsom announces the state’s revised budget in Sacramento on May 10, 2024. Office of California Gov. Gavin Newsom

California’s personal income and corporate tax revenues came in above expectations for July—the first month of the fiscal year—as well as the prior fiscal year, according to preliminary data from state agencies.

Jason Sisney, budget director for Assembly Speaker Robert Rivas’s office, reported in an Aug. 5 Substack post that July revenues exceeded forecasts by 16.4 percent—coming in $1.26 billion higher than expected.