California's September revenue above forecast

Reuters

SAN FRANCISCO, Oct 16 (Reuters) - California's revenue forSeptember came in $392 million above projection in the state'sbudget, putting it $136 million above forecast for the currentfiscal year that began in July, the state's finance departmentsaid on Wednesday.

Revenue from personal income taxes, California's mostimportant source of revenue, was $458 million above forecastlast month, while revenue from sales taxes was $170 millionabove projection in the state budget.

Revenue from corporate taxes was $119 million below forecastand insurance-tax revenue missed the budget's projection by $93million. Results for less important revenue sources were mixed.

California's economy is on the upswing, and that, pairedwith voter-approved tax increases last year, is lifting therevenue of the most populous U.S. state.

Governor Jerry Brown earlier this year ended a decade ofdeficits by signing into law a state budget with a surplus andthat modestly increases spending.

Fitch Ratings on Friday affirmed its 'A' rating onapproximately $74 billion of California's outstanding generalobligation bonds. Fitch had raised its rating on the debt from'A-minus' in August.

"Institutionalized changes to fiscal management in recentyears, combined with the ongoing economic and revenue recoveryhave enabled the state to materially improve its overall fiscalstanding," Fitch said in a report. "Notable progress includestimely, more structurally sound budgets, spending restraint, andsizable reductions in budgetary debt."

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