Posted by Kevin Yamamura in SecBee Capitolalert | http://bit.ly/oGMCvr
August 16, 2011 - Gov. Jerry Brown's Department of Finance said Tuesday that California was $541 million shy of its July revenue forecast, a total similar to one released last week by state Controller John Chiang.
School officials grew nervous last week because the state budget signed by Brown requires K-12 districts to absorb cuts if the state falls $4 billion shy of revenue expectations for the fiscal year. The budget also would impose cuts to higher education, social services and public safety programs.
State legislators and Brown tacked on that $4 billion expectation of higher revenues to finish closing the state deficit in June.
Finance officials, in a department bulletin, cautioned against early concern. They suggested that most of the higher revenues would come on the back end of the fiscal year, from December through June. And they said forecasts by the Legislative Analyst's Office and Department of Finance in November and December would determine whether the "trigger" cuts are necessary.
The $541 million in missed revenues represents 9.2 percent of the $5.867 billion that Finance expected the state to receive in July.
Of that amount, $229 million was the July share of the $4 billion budget bump. The state fell $112 million shy of a projected $361 million in corporate taxes and $21 million short of a projected $3.165 billion in personal income taxes. The state surpassed its sales tax target of $1.64 billion by $1 million.
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