The state Department of Finance, agreeing with most other economic forecasters, says California's economy appears to have hit the bottom of the recessionary trough and is beginning to recover.
"A resurgent labor force is one of several signs that the economy is slowly getting back on its feet," the department says in its monthly economic bulletin. "A resumption of job growth pulled discouraged people back into the labor market. Building activity, both residential and nonresidential, appears to have stabilized and, while still at low levels, has improved modestly from the beginning of 2009."
The department, echoing a report last week from Controller John Chiang, says that general fund revenues so far in the 2009-10 fiscal year, are running slightly ahead of the state budget forecast. By the end of May, one month before the fiscal year closes, general revenues were $76.2 billion, about $300 million over the forecast.
Earlier in the year, the state was hoping for a multibillion-dollar windfall, but revenues in April, when income taxes were due, fell well short of expectations. Overall, income taxes ran $424 million above expectations through May, but sales taxes fell short and other, minor sources of revenue ran on track.
The full bulletin can be found here.