Controller: Tax Revenue Nosedives
There’s more tough financial news for California. The State Controller says tax revenues have taken a nosedive this year.
Friday, May 8, 2009
State Controller John Chaing says tax revenues are more than two billion dollars below what lawmakers had planned on in the February budget. Income taxes, corporate taxes and sales taxes are all down. The news comes as the state heads into a special election.
Legislative leaders were counting on the ballot measures to help balance the budget, but most are trailing in the polls. The state’s non-partisan legislative analyst says the state’s likely to run out of cash this summer or fall…and the deficit will be at least eight billion dollars….though many lawmakers now expect that figure to be much higher. Legislative leaders say they expect deep cuts will be needed to balance the budget. In a statement, the Controller said the state faces a cash problem “unseen in nearly eight decades.”