California revenues are $2 billion below its budget forecast for the first two months of fiscal year 2023.

The monthly report released by the state’s Department of Finance Friday also showed that August revenues of $12.79 billion came in $816 million, or 6%, below the forecast in the 2022-23 Budget Act.

For the first two months of the fiscal year, revenues are $22.03 billion, 8.4% below the $24.04 billion forecast.

The August miss was mostly due to a shortfall in personal income tax receipts, according to the report. Personal income tax receipts were $615 million below the month’s forecast of $8.05 billion.

“August is not a significant month for personal income tax cash receipts, except for withholding, which is significant every month,” according to the DOF report. “Notable, withholding receipts fell $700 million short of projections in August, or 9.1%.”

This was the third consecutive month that withholding receipts fell below forecast and followed a $731 million, or 10.1%, shortfall in July and a $437 million, or $5.8%, shortfall in June.

Corporation tax receipts for August were $81 million, or 19%, below the forecast of $426 million. August is also not a significant month for corporation tax cash receipts.

Sales and use tax cash receipts for August were $4.3 billion, which was 4.5%, below the month’s forecast of $4.3 billion. This was the third consecutive month that sales and use tax receipts were down relative to the forecast.

August receipts included the majority of the final payments for second quarter taxable sales, which were due on Aug. 1, as well as the first prepayment for third quarter sales.