Business News
SACRAMENTO – On Feb. 10 State Controller John Chiang released his monthly report covering California’s cash balance, receipts and disbursements in January.
The month’s receipts rose above the governor’s 2010-11 budget estimates by $1.28 billion, or 18.6 percent.
“The positive receipts are welcome news, but the state cannot be lulled into a false sense of security,” said Chiang. “Our cash position falls below safe levels this spring, and goes into the red this summer. Our chronic budget shortfalls require credible and sustainable fixes in order to protect taxpayers, local governments, and state funded programs.”
The controller updated his cash-flow outlook to reflect January’s totals. These estimates are based on the results of stress-testing cash-flow projections in the governor’s most recent budget proposal that were updated with January’s actual revenue and expenditure data.
The state now dips below its minimum $2.5 billion cash cushion on March 30 and does not return to safe levels until April 16.
Year-to-date receipts are ahead of budget estimates by $459 million, or 1 percent, but state payments also went out faster than expected.
Disbursements through Jan. 31 were $586 million ahead of projections.
Special funds, which the state can borrow from to bolster its general fund cash position, were $1.6 billion higher than projected on Jan. 31.
But historical patterns show that $627 million of those funds may not be available for future cash-flow borrowing. That leaves the state’s true cash position $855 million ahead of projected levels on Jan. 31.
The state started the fiscal year with an $11.9 billion cash deficit in the general fund, which grew to $24.1 billion by Jan. 31. Those deficits are being covered with a combination of $15.3 billion of internal borrowing from special funds and $8.8 billion in short-term Revenue Anticipation Notes.
January's financial statement and the summary analysis can be found on the Controller’s Web site at www.sco.ca.gov .
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According to the latest report from AAA Northern California, average gas prices in all but six metro areas across the northern part of the state have dropped below the $3 a gallon mark.
Out of 25 metro areas where AAA tracks gas prices across Northern California, all but eight have seen a double digit decrease in the average price compared to AAA’s last survey on January 12.
“Weakening demand for gasoline, due to severe weather throughout the country, has helped to keep gas prices on a downward path,” said AAA Northern California spokesperson Matt Skryja. “Although positive economic data was released last week, which normally would lead to a rise in oil prices, investors were not inspired to buy, because many felt the data masked a poor economic trend.”
California’s average gas price is the third highest among all 50 states according to the latest report from AAA, which tracks gasoline prices as a service to consumers.
The Golden State’s average for a gallon of regular, unleaded gasoline is $2.96, down 10 cents since last month’s report.
For perspective, that’s 74 cents more than California’s average price on this date last year, when it was $2.22.
Northern California gas prices are now averaging $2.94, down 11 cents from last month.
In the San Francisco Bay Area, motorists can expect to pay an average price of $3.04, a nine-cent drop. The national average price of $2.64 is down by 11 cents, which is 72 cents more than the national price on this date last year, when it was $1.92.
Oil prices were recently under tremendous downward pressure that pushed prices to their lowest levels in nearly two months.
Persistent doubts about the domestic employment environment, the threat of a second European recession, and a strong showing by the U.S. dollar were the primary motivators for last week’s lower oil prices.
A growing number of market analysts believe the rise in oil prices at the beginning of 2010 was an example of market exuberance that never really had legs to stand on.
The least expensive average price in Northern California can be found in Marysville where unleaded is $2.74.
Of all the metro areas in Northern California where gas prices are tracked by AAA, Tahoe City has the highest average price at $3.30 for the second month in a row. It’s also the highest price in the lower 48 states.
The least expensive gasoline in the country is found in Springfield, Missouri, where the average price of gas is $2.34.
Wailuku, Hawaii, holds the dubious crown for the highest average price in the nation, at $3.79 per gallon.
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