Not Yet Out of the Woods on the State Budget
The latest cash statement from the state controller released today covers the fiscal year 2010-11 through May (11/12 of the year). It tells you what has actually happened so far this year as opposed to optimistic forecasts about next year. Despite all of the hoopla about extra revenue, the statement indicates we are not out of the woods regarding the state budget. Relative to last year, sales tax revenue is up 1.7%, less than inflation in other words, which suggests a not-so-vibrant underlying retail economy. Overall revenue is up 7.6% over the same period last year and the gain is…