More bad news for state budget
California’s budget woes deepened Tuesday as the state reported that tax receipts plummeted nearly $1 billion last month because of plunging corporate profits.
The news comes as the state moves closer to the July 1 deadline for lawmakers to close California’s budget gap, which had earlier been estimated at $16 billion, and there is little agreement on how to do that.
Corporate taxes alone came into the state at $869 million below what was forecast in Gov. Arnold Schwarzenegger’s budget, released in January. Overall, revenues were down $912 million for the month.
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