State's Coffers Seen Growing by $1 Billion

From Bloomberg News

California officials said Thursday that they expect tax revenue to be about $1 billion more than anticipated this year, as the state begins its third straight year of growth.

The state has received about $450 million more than expected over the last six months from income taxes, mainly because of growth in the computer and entertainment industries, the Department of Finance said.

California was one of the last states to recover from the last national recession, after the aerospace industry was devastated by federal cutbacks.

Officials now project California's economy will grow at about a 2.5% pace for the next two years.

The state is also expected to surpass $1 trillion in goods and services produced for the first time this year. That amount would be more than the gross domestic product of all of South America, officials said.

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