California's September receipts outpace estimates by 14.4 percent, while year-to-date expenditures also exceed projections
SACRAMENTO, Calif., Oct. 12, 2026 /PRNewswire/ -- State Controller Malia M. Cohen has released the State's September 2026 cash report, showing that California's General Fund receipts totaled $22.9 billion for the month, exceeding projections in the 2026-27 Budget Act by $2.9 billion, or 14.4 percent.
September's stronger-than-expected revenues were driven by higher collections across the state's three major tax categories. Corporation tax collections exceeded Budget Act estimates by $1.4 billion, or 52.1 percent, while personal income tax revenues came in $1.1 billion, or 8.0 percent, above projections. Retail sales and use tax collections also surpassed expectations by $156 million, or 5.5 percent.
"California's revenues are running ahead of expectations, and that is encouraging news. But higher revenues do not tell the whole story. State spending is also exceeding projections, and we cannot lose sight of the fiscal challenges ahead," said Controller Cohen. "We must remain disciplined, protect our reserves, and make sure California can meet its financial obligations while continuing to deliver the services millions of Californians rely on."
While revenues exceeded expectations, state disbursements also continued to outpace budget projections. Through September, total year-to-date disbursements were $11.8 billion, or 13.3 percent, above estimates in the 2026-27 Budget Act. State operations spending exceeded projections by $4.3 billion, or 29.4 percent, while local assistance disbursements were $4.1 billion, or 6.2 percent, higher than anticipated.
As of September 30, 2026, the General Fund reported accumulated outstanding loans of $326.4 million using internal borrowing and an ending cash balance of $0.0 billion.
As the chief fiscal officer of the fourth-largest economy in the world, California State Controller Malia M. Cohen independently oversees and manages the state's financial resources with integrity and transparency to build trust. Controller Cohen is responsible for accountability and disbursement of the state's financial resources. She has independent auditing authority over government agencies that spend state funds. The Controller is a member of numerous financing authorities, and fiscal and financial oversight entities including the Franchise Tax Board. She also serves on the boards for the nation's two largest public pension funds. Follow the California State Controller's Office on X, Facebook, and YouTube at @CAController and on Instagram at @CaliforniaController.
SOURCE California State Controller's Office
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