2024-25 revenue $5.3 billion above forecast through October

Data confirms positive income tax trend as well as strong interest earnings

The Department of Finance’s monthly Finance Bulletin indicates that 2024-25 California General Fund revenue receipts at the state’s tax agencies were $5.249 billion above budget projections through the end of October 2024. (The Finance Bulletin omits an update from the tax agencies last week that adjusted those estimates up an additional $33 million.) The Finance Bulletin confirms the very positive trend for income taxes previously discussed here and here.

While sales taxes are running 2.3% below projections for the fiscal year to date, this gap is offset principally by strong interest income trends generated by the state’s large cash balances (26.0% above projections).

As previously noted, the bulk of the added revenue appears already spoken for in the state budget.