California’s Cash Situation Continues to Deteriorate
Friday, February 10, 2012
The State Controller’s office says January revenues came in well below what Governor Jerry Brown’s latest budget proposal had projected them to be.
Democratic lawmakers have been hoping for stronger-than-expected revenues so they could avoid making yet another round of budget cuts. But last month’s revenues fell more than half a billion dollars short of projections in the governor’s January budget proposal. That blueprint estimated a nine-point-two billion dollar deficit. This news means the gap could grow larger.
Controller John Chiang called the revenues “disappointing on almost every front.” And even the governor’s Finance Department said the numbers are “concerning.” Brown’s budget crunchers said the recent shortfall comes mostly from lower-than-expected fourth quarter personal income tax receipts. They said that’s rare, and they’re not sure why – but it’s possible the gap will be made up in future quarterly payments. If not, they acknowledged, the state’s deficit will go up.
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