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California’s Cash Situation Continues to Deteriorate

Aired 2/10/12 on KPBS News.

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.

Comments

Avatar for user 'EarlRichards'

EarlRichards | February 11, 2012 at 2:13 a.m. ― 2 years, 8 months ago

Brown is blackmailing Californians. Why does Brown always pick-on the most vulnerable, education and the public services? He should close corporate and commercial tax loopholes, introduce an oil extraction tax, an oil corporation, windfall-profits tax, Chevron made $27 billions in 2011 and paid no federal tax, and trim the bond interest paid to Wall Street.These taxes have to be rolled-back. These budget cuts will prolong the recession.

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