Controller Malia M. Cohen’s October Cash Report Shows Revenues Continue to Trend Higher Than Projections

SACRAMENTO - Today, State Controller Malia M. Cohen released her monthly cash report covering the state's General Fund revenues, disbursements and actual cash balance for the fiscal year through October 31, 2025.

As noted in the Controller's Monthly Statement of General Fund Cash Receipts and Disbursements, receipts for the fiscal year through October exceeded estimates contained in the 2025-26 Budget Act by $6.5 billion, or 9.7 percent. Fiscal year-to-date expenditures were higher than Budget Act estimates by $3.4 billion, or 3.9 percent.

"I remain cautiously optimistic about California's fiscal outlook, as revenues continue to trend above projections," said Controller Cohen. "But even with near-record revenues, our structural budget challenges persist. That's why I continue to call for maintaining strong reserves and limiting reliance on budgetary borrowing. Sound fiscal management today ensures we have the flexibility to protect vital services and avoid drastic cuts if revenues decline."

For the fiscal year through October, personal income tax receipts were $5.9 billion above Budget Act projections, or 15 percent. Corporation tax collections were $164.9 million below estimates, or 2.4 percent. Retail sales and use tax receipts were $51.1 million below budget projections, or 0.5 percent.

As chair of Franchise Tax Board, the Controller notes that while April 15 is the traditional annual personal income tax payment deadline, the Franchise Tax Board extended the deadline for certain Los Angeles County residents and businesses impacted by the fires that began on January 7, 2025. These residents and businesses had until October 15, 2025, to file and pay taxes. Total personal income tax collections for the month of October were $14.6 billion, exceeding budget estimates by $2 billion or 15.7 percent. According to preliminary Franchise Tax Board information, the state received $3.9 billion in final 2024 tax return collections in October - inclusive of extensions for Los Angeles County and all extensions granted for the tax year - which beat budget projections for the month by $498 million. Also included in October personal income tax collections were 2025 estimated tax payments that included Los Angeles delayed filings. These estimated payments were $1.3 billion, or 72.4 percent, above projections.

As of October 31, the state had $85.8 billion in unused borrowable resources. These resources are from internal funds outside of the General Fund that are borrowable under state law and that the State Controller's Office uses to manage daily and monthly cash deficits when revenue collections are lower than expenditures. Internal borrowing from special funds is short-term and is repaid so that borrowing does not affect the operations of the special funds. The Controller cautions against the use of special fund borrowing for budgetary purposes as it may increase future debts and deplete reserves, limiting the state's ability in an economic downturn to avoid harsh spending cuts.

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