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State Revenue Short of Expectations

Posted on Tuesday, July 12, 2011 11:50am

According to an update from the State Controller, California is already behind the revenue estimates in the recent state budget.

The latest cash report from Controller John Chiang shows California ended the final month of the fiscal year with more money than state leaders originally expected……but with less than they were counting on in the recently adopted state budget. The state spending plan assumes one-point-two billion dollars in additional May and June revenue….and only about 850 million dollars of that materialized.

Chiang says the report shows many positive signs–including growth in all three major sources of revenue in June: sales, income and corporate taxes. But he notes the budget’s success relies on continued economic expansion. Lawmakers are counting on an additional four billion dollars this fiscal year. If that doesn’t turn up, a set of deeper cuts to schools and other programs will be triggered.

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