Dreary April tax collections raise budget worries, controller says
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California Controller John Chiang has joined a chorus of voices expressing concern over a sharp dip in tax revenue last month.
He issued a report on Tuesday saying the state received 20% less in tax revenue than expected in April, the most important month for income tax collections. The one-month shortfall of $2.44 billion means the state is now $3.5 billion behind its tax goals for the current fiscal year, the report said.
‘The task of crafting a credibly balanced budget has been made more difficult by a nine-month revenue shortfall of $3.5 billion,’ Chiang said in a statement. ‘Without a timely, financeable budget plan, the state will be unable to access the working capital needed to pay its bills later this year.’
The Legislative Analyst’s Office has previously pegged the shortfall in the current fiscal year at $3 billion.
Gov. Jerry Brown is expected to release his updated budget proposal on Monday, and the Capitol is bracing for news of a budget deficit larger than the $9.2-billion estimate released in January.
-- Chris Megerian in Sacramento