PR26:06


FOR IMMEDIATE RELEASE


2/19/2026


Bismarck Obando


Press Secretary


916-201-9261 | Bobando@sco.ca.gov

Mariana Carine


Assistant Press Secretary


916-838-5283 | Mcarine@sco.ca.gov

 


State Controller Malia M. Cohen Continues to Urge Fiscal Discipline as the State’s Revenue Collections Show Strength Through January


 

SACRAMENTO — State Controller Malia M. Cohen today released her January Cash Report which shows solid revenue collections for the fiscal year through January. With persistent global economic uncertainty remaining a concern, Controller Cohen continues to urge budget leaders to limit budgetary borrowing and reduce the size of projected multi-year deficits in order to best position the state to face potential revenue volatility.

According to the Controller’s Monthly Statement of General Fund Cash Receipts and Disbursements, receipts for the fiscal year through January exceeded the 2026-27 Governor’s Budget estimate by $6.9 billion, or 5.1 percent. Spending was lower than Governor’s Budget estimates by $563.6 million, or 0.4 percent.

 

“As the state’s Chief Fiscal Officer, I recognize that while solid cash receipts are welcome news for California’s balance sheet, our stature as a global economic powerhouse will always bring with it near- and long-term financial challenges,” said Controller Cohen. With requirements placed on how the state may spend any excess revenues – which include essential obligations to schools and rainy-day savings – I urge budget leaders to remain mindful that the state has experienced boom-and-bust revenue cycles in the past. Tackling ongoing deficits and limiting the amount of budgetary borrowing reinforces that the state is prepared to thrive in the face of future revenue volatility.”

 

For the fiscal year through January, personal income tax receipts came in above Governor’s Budget projections by $4.6 billion, or 5.5 percent. Corporation tax collections were $1.4 billion above estimates, or 7.3 percent, and retail sales and use tax receipts were $20 million below projections, or 0.1 percent.

 

As of January 31, the state had $86.8 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 cautioned 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 shown in the summary chart below, the Governor’s Budget expects an ongoing gap of spending outpacing revenues:

 

As the chief fiscal officer of the fifth-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.

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  https://sierrawave.net/state-controller-malia-m-cohen-continues-to-urge-fiscal-discipline-as-the-states-revenue-collections-show-strength-through-january/