July Revenues Fall Short of Califiornia Budget Projections
California revenues are off to a slow start in the new budget year.
The state controller’s office says they came in six percent below projections for the month of July. Disappointing personal income tax proceeds offset slight gains in sales and corporate tax revenues.
Governor Jerry Brown convinced lawmakers to use his more conservative projections in this year’s budget. Democratic leaders had pushed for more optimistic estimates.
July is considered a slow month for revenues in general, and not necessarily indicative of the state’s overall financial health. But if revenues continue to fall short of projections, the state could find itself with a new deficit after finally erasing its budget gap this year.