California's September revenue above forecast
SAN FRANCISCO, Oct 16 (Reuters) - California's revenue for September came in $392 million above projection in the state's budget, putting it $136 million above forecast for the current fiscal year that began in July, the state's finance department said on Wednesday.
Revenue from personal income taxes, California's most important source of revenue, was $458 million above forecast last month, while revenue from sales taxes was $170 million above projection in the state budget.
Revenue from corporate taxes was $119 million below forecast and insurance-tax revenue missed the budget's projection by $93 million. Results for less important revenue sources were mixed.
California's economy is on the upswing, and that, paired with voter-approved tax increases last year, is lifting the revenue of the most populous U.S. state.
Governor Jerry Brown earlier this year ended a decade of deficits by signing into law a state budget with a surplus and that modestly increases spending.
Fitch Ratings on Friday affirmed its 'A' rating on approximately $74 billion of California's outstanding general obligation bonds. Fitch had raised its rating on the debt from 'A-minus' in August.
"Institutionalized changes to fiscal management in recent years, combined with the ongoing economic and revenue recovery have enabled the state to materially improve its overall fiscal standing," Fitch said in a report. "Notable progress includes timely, more structurally sound budgets, spending restraint, and sizable reductions in budgetary debt."