.

State Revenues Fall Below Projections Again, Cuts to Schools Loom

State Controller John Chiang today released his monthly report covering California's cash balance, receipts and disbursements in July, showing revenues were down $538.8 million.

California revenues dropped below projections again in July, pushing the state closer to "drastic trigger cuts" to public education, said controller John Chiang Tuesday.

Chiang reported that tax revenues were $538.8 million—10.3 percent—below projections included in the state budget, which predicated a growth economy.

The budget has built-in “triggers” for cuts if the revenues don’t flow. If the state comes up $2 billion short, it will start cutting school funding, and other services.

Income taxes were above projections by $89 million, or 2.9 percent, in July. But sales taxes fell by 12.5 percent and corporate taxes plummeted 19.3 percent in the same month.

"While July's revenues performed remarkably similar to last year's, they still did not meet the budget's projections," said Chiang. "While we hope for better news in the months ahead, every drop in revenues puts us closer to the drastic trigger cuts that could be imposed next year."

However, finance spokesman H.D. Palmer told the Sacramento Bee that his department found the state did not miss its sales tax target.

"It was not yet clear where Finance will land on the July share of the [budget's] $4 billion tax windfall assumption," the Bee reports. "He cautioned against assuming the state will pull the trigger on the additional cuts this year."

Rob August 10, 2011 at 06:16 PM
Ya think additional taxes on business, additional fees on job creators, additional regulations on job creators, and demonizing them constantly starting with the Empty Suit that sits in the White House, as contrasted with low tax environments and friendly places to do business such as Texas might have an impact? Time to get real. We live in a world where we MUST compete - nationally and globally! The problem with the politicians is that they want to pander to get elected, but their strategies are not sustainable. And instead of looking to business to re-introduce what is needed here to invigorate California, and to champion business like Texas does, they simply put their heads in the sand and spend more. Lousy philosophy.

Boards

More »
Got a question? Something on your mind? Talk to your community, directly.
Note Article
Just a short thought to get the word out quickly about anything in your neighborhood.
Share something with your neighbors.What's on your mind?What's on your mind?Make an announcement, speak your mind, or sell somethingPost something
See more »