Skip to comments.California tax revenue plummets in July, raising fear of trigger cuts
Posted on 08/10/2011 10:52:13 AM PDT by dragnet2
July income was $539 million lower than expected, leading many to doubt the state budget's assumption of economic recovery and a $4-billion windfall. If revenues remain low, drastic education cuts will kick in.
California's tax revenue plummeted in July, missing expectations by nearly $539 million and raising fears that deep education cuts will be needed to keep the state budget balanced.
The plunge occurred before the recent Wall Street gyrations that wiped away many of the year's stock-market gains. If the economy remains sluggish and the $4 billion does not materialize, cuts in public schools, universities, libraries, child care, and services for the elderly and frail will automatically take effect.
"Every drop in revenues puts us closer to the drastic trigger cuts that could be imposed next year," state Controller John Chiang said
In Washington on Tuesday, the Federal Reserve sharply downgraded its outlook for the American economy
California's education cuts will kick in if finance officials determine revenue to be $2 billion or more below expectations as of December. If enacted, the $1.5 billion in school reductions could shrink the academic year by as many as seven days in some districts.
(Excerpt) Read more at latimes.com ...
Time to buck up and put your money where your mouth is Babs, Matt, Sean, George...anyone?
The Governor's nickname is Moonbeam...Californians didn't get enough of a kick to the groin the last time this moron was in office so they went back for a second helping.
The problem for them here and elsewhere, is there is no one left to kick money out of. Tax revenues drying up. No more money honey.
Now we get to watch them turn on each other, and kick themselves.
that giant sucking sound are businesses exiting kalifornia just as fast as they can, with all that tax revenue following close behind.
It used to be for the “Chilrun” but now that the Baby Boomers are getting “elderly and frail” they are using that as a sympathy line.
I have to admit that you are 100% right. Ever notice that the Republican party has avoided even mentioning cutting off benefits for illegals? Betraying America is a two-party effort.
Absolutely, and the reason I won't support another Republican candidate until they run people who will kick the podium over and demand relief for Americans from this government sponsored country killing betrayal.
Republicans fault for not wasting taxpayer's dollars and letting temporary tax increases expire.
That sale tax reduction amounts to about 10m out of an 1,100m shortfall. It’s nothing, not even 1%. And even if it had passed, the special election would’ve cost about $70m.
I blame the idiot electorate and I don’t see the problem of the massive spending or the continuing election of socialists, until California financially crashes and burns. I think that is our end game. We go on with $30-$40 billion annual deficits until we crash and burn. I can see a day coming when the “budget shortfall” is on the order of the general fund. Around then, our bonds won’t sell and we’ll come to a screeching halt. Then, we rebuild.