Calif. April tax revenues fall $2.5 billion short of projections

11:49 AM, May 8, 2012   |    comments
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SACRAMENTO, CA - California April tax revenues were $2.44 billion below projections.

State Controller John Chiang said personal income tax receipts were $1.96 billion less than expected; sales taxes were off $45.8 million and corporate taxes came in $142.7 million less than estimated.

Overall, state income since the first of the year is $3.5 billion short of Gov. Brown's proposed 2012-13 budget which projects revenues and transfers of $95.4 billion. A revised budget plan is expected in mid May. The new fiscal year begins July 1.

Chiang said between the 2010-2011 carry-over deficit of $8.2 billion and this fiscal year's red ink, California's combined cash deficit is $19.2 billion. Temporary loans from internal special funds are covering $12.8 billion and external borrowing is making up the remaining $6.4 billion.

The controller warned the state is in jeopardy of not meeting its bills later this year without a "timely, financeable budget plan."

Brown is seeking voter approval of a temporary 1/2 cent sales tax increase and higher taxes on California wage earners making $250,000 or more to meet his budget.

News10/KXTV