$4B of anticipated revenue now looks unlikely to materialize
by Brian Leubitz
The budget was always something of a hope and prayer exercise. Well, with today’s cash figures from Controller Chiang’s office, you better start praying harder:
“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.”
Income taxes were above projections by $89 million (2.9 percent) in July. But sales taxes were down $139.4 million (-12.5 percent), and corporate taxes were down $69.5 million (-19.3 percent) in the same month.
Unfotunately, we need to exceed projections by quite a few bucks every month to get to the hopeful goal of $4b of “additional revenue.” With this latest setback, we are down $538.8 million from where we need to be to avoid the triggers.
And at this point, we can’t even get enough money from new sources soon enough if we thought we could pass a ballot measure. The next election, in June, comes at the end of the fiscal year, too late to really help.
Of course, those triggered cuts would further devastate the California economy, our schools and our services. Unless we get that revenue soon, this fiscal year could be a lot bleaker than we thought.