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State Revenue Below Budget Projections

Posted on Wednesday, August 10, 2011 11:08am

There’s more bad financial news for California: the state’s July revenues came in 10 percent below projections in the new state budget.

The new state budget relies on four billion dollars in extra revenue – and lays out specific areas for “trigger cuts” if that projection falls short. The State Controller’s office says so far, revenue HAS fallen short – by more than half a billion dollars last month.

If that trend continues and the trigger cuts kick in, the University of California and California State University systems would see deeper cuts, likely resulting in extra tuition increases. Health care and social programs would lose money too. And school districts might have to eliminate up to seven days of classes.

The decision over whether to pull those triggers won’t be made until the end of this year.

The governor’s Department of Finance says it thinks July revenues may end up being a bit higher than the Controller’s office projects.

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