California revenues soar as rich get richer during pandemic

Virus Outbreak California Budget
Posted at 9:32 AM, Feb 28, 2021
and last updated 2021-02-28 12:32:45-05

SACRAMENTO, Calif. (AP) — California is billions of dollars ahead of its tax collections projections despite many people being out of work because of the pandemic.

The state lost 1.6 million jobs in 2020 and nearly half a million people stopped looking for work.

But California's income tax collections in January were $7.5 billion more than projected, putting the state $10.5 billion ahead for the fiscal year that began on July 1.

California has a $15 billion surplus to spend this year. If trends continue, the state could add another $4 billion to that total.

The state has already approved a $7.6 billion coronavirus aid package.