CALIFORNIA TAX REVENUES STEADY DURING DROUGHT

摘要

Californla's economy is showing resiliency despite the worst drought in recent history and its severe effect on agriculture. A recent report released by Moody's Investors Service evaluated the potential economic impact of drought-weakened agriculture on tax revenues in California. The study analyzes key economic indicators including earnings, tax revenue, and the unemployment rate to quantify potential effects of the drought. The study suggests the drought will not have a significant impact on county earnings. Table 1 shows 2012 earnings across all sectors and in the farm sector alone for the top five highest-earning agricultural counties in California. In counties with high agricultural concentrations, earnings from the farm sector comprise less than 20% of total county earnings. For example, Kern County has the highest earnings attributed to the farm sector within the state. The agricultural sector in Kern County accounts for approximately $2.2 billion, which is less than 10% of the county's total earnings across all sectors.