Community News

With Looming Budget Deadline, Controller Malia M. Cohen Issues May Cash Update with Continued Call for Fiscal Discipline

 

by: SCO Newsroom
Published: June 10, 2026

 

SACRAMENTO...State Controller Malia M. Cohen today released California’s monthly cash report which includes actual General Fund revenue receipts and expenditure data for the fiscal year through May 31. With the California Legislature working to pass a balanced budget by the June 15 deadline, Controller Cohen reinforced her call for fiscal discipline to guard against future revenue volatility.

According to the Controller’s Monthly Statement of General Fund Cash Receipts and Disbursements, receipts for the fiscal year through May exceeded the 2026-27 May Revision estimate by $643.7 million, or 0.3 percent. Spending was lower than May Revision estimates by $5.4 billion, or 2.4 percent.

“With the end of the fiscal year approaching and lawmakers hard at work to pass a balanced budget by June 15, state revenues have long been supported by all-time market highs and taxes paid by the highest income earners,” said Controller Cohen. “While current revenues remain strong, California’s fiscal outlook is still subject to economic uncertainty and revenue volatility. As fiscal stewards, we must continue planning for the long term by paying down accumulated liabilities, strengthening our reserves, and maintaining the flexibility needed to respond to future challenges.”

For the fiscal year through May, personal income tax receipts were above May Revision projections by $412.7 million, or 0.3 percent. Corporation tax collections came in $89.4 million below estimates, or 0.3 percent, and retail sales and use tax receipts were $455.3 million above projections, or 1.5 percent.

As of May 31, the state had $86.9 billion in unused borrowable resources in its special funds. These internal funds are available for short-term General Fund use in order to manage cash deficits related to the timing of revenue collections. While any cash-flow borrowing is repaid to not affect special fund operations, Controller Cohen continues to caution against relying on internal borrowing to address budget gaps, warning that overuse can increase future liabilities and weaken reserves needed to avoid deeper cuts during an economic downturn.

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.