California tax receipts far below Brown’s budget estimate
Money continues coming into California’s coffers well below what Gov. Jerry Brown forecast in his proposed budget.
State Controller John Chiang issued a report Friday showing that tax receipts in January were $528 million lower than the governor projected in the budget he released a few weeks ago. That document already assumed a $9-billion deficit.
“January’s revenues were disappointing on almost every front,” Chiang said in a statement.
But Chiang said the state is no longer in danger of running out of cash next month, as he had previously warned. The Department of Finance will shift funds around and take short-term loans to avoid falling as much as $3 billion in the red.
After Chiang’s announcement Friday, the Department of Finance issued an analysis attributing the shortfall to a sudden drop in income-tax payments and said it was too soon to tell whether those receipts would bounce back in April.
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