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State Revenues Down in October

Controller Chiang said October revenues came in more than eight hundred million dollars below projections. In his statement, Chiang said last month’s poor showing capped a “very disappointing” first four months of the fiscal year. Year-to-date general fund revenues are now behind the budget estimates by one and a half billion dollars. At the same time Chiang said spending has surpassed projections.

This year’s budget deal requires the state to automatically cut spending in a number of programs if revenue falls short of projections. This news raises concerns that those “trigger cuts” will be necessary.

But the Governor’s Department of Finance said those cuts won’t be based on month-by-month cash revenues. Instead the state will rely on revised revenue forecasts for the whole fiscal year.