LAO: State Likely Will Be a ‘Few Billion’ Short of Budget Projections
On Wednesday, the Legislative Analyst's Office estimated that April revenues will leave California "a few billion dollars" short of Gov. Jerry Brown's (D) budget expectations through June 2013, the Sacramento Bee's "Capitol Alert" reports.
Brown had estimated as part of his budget proposal for the 2012-2013 fiscal year that the state would collect $9.4 billion from personal income tax collections this month. However, LAO predicts thatÂ personal income taxÂ revenues for April will be more than $2 billion below Brown's projection for the month.
According to LAO, the state already was behind in collectingÂ personal income taxÂ revenue, soÂ total revenuesÂ likely will be $3 billion short of Brown's updated projectionsÂ for the fiscal year.
LAO also said corporate taxes are likely to come in about $450 million below expectations through April. The analyst's office said that unless sales taxes are robust, the state will be about $3.5 billion below expectations for the fiscal year.
Next month, Brown will issue a revised budget that incorporates April tax revenues.Â April is considered the state's biggest collection month (Yamamura, "Capitol Alert," Sacramento Bee, 4/25).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.