A new report gives a picture of the state’s resources as it faces a budget shortfall.
State Controller Malia M. Cohen has issued the state’s Annual Comprehensive Financial Report, or ACFR, for the fiscal year that ended June 30, 2022, showing General Fund revenues of $199.2 billion, a $2.2 billion or 1.1 percent increase compared to the prior year.
General Fund revenues from personal income taxes were $123.3 billion, a $6.2 billion or 4.8 percent decrease from prior fiscal year revenues.
General Fund revenues from sales and use taxes of $32.8 billion increased by nearly $3.7 billion, or 12.6 percent from the prior year, primarily due to the rebound of retail sales activities in the aftermath of the COVID-19 pandemic.
Corporation taxes were $35.8 billion and increased by nearly $3.7 billion, or 11.5 percent from the prior year, due to a continued growth in retail sales and investments consistent with the prior year’s upsurge.
The state ended the fiscal year with a $74 billion General Fund balance, a $98 million decrease from the prior year’s ending fund balance.
This balance included $20.3 billion restricted for budget stabilization if the governor must declare a budget emergency during an economic crisis.
The state’s general revenues increased by $6.6 billion, or 2.9 percent, over the prior year. For the fiscal year, the state’s revenue exceeded expenses by $18.8 billion for governmental activities.
California had a net pension liability of $47.9 billion as of June 30, 2022 for governmental activities. The state had nearly $239.7 billion in total long-term obligations including bonds, pensions, loans, and leases.
This is the fifth consecutive ACFR that has been published late due to ongoing challenges in receiving financial statements from state departments and audited opinions from the California State Auditor.
The California State Auditor issued modified opinions on several components of the state’s basic financial statements because of these ongoing challenges.
Thanks to resources made available by the Legislature and Governor in the 2023-24 Budget, the State Controller’s Office is aggressively working toward its goal of publishing an on-time fiscal 2024-25 ACFR by March 2026.
The State Controller’s Office has moved quickly to permanently hire 13 new staff members with more in progress, bring in consultants, address technology needs, improve business processes, and compile resources that will assist departments with quickly responding to and resolving accounting issues.
“As my office continues to make meaningful progress toward restoring the timely issuance of this critical report, I remain grateful for the collaboration and support of the Legislature, the Governor’s administration and state department leaders, and control agencies in this effort,” said Controller Cohen.
The ACFR is prepared by the Controller’s team each year, adheres to generally accepted accounting principles and follows guidance from the Governmental Accounting Standards Board, or GASB.
Independently audited by the California State Auditor, the ACFR allows for apples-to-apples comparisons between entities and provides valuable financial information to the public, financial experts, and investors.
As the chief fiscal officer of California, Controller Cohen is responsible for accountability and disbursement of the state’s financial resources. The controller has independent auditing authority over government agencies that spend state funds.