Whoops
No, things are not as bad as the picture suggests. But the state controller reports that through November, receipts are about $800 million below the original budget estimates (which include Prop 30). About half of the missing revenue is attributable to corporate profits tax net receipts. The controller also notes that Facebook’s IPO produced less for the state than expected. And expenditures are up more than $2 billion above estimates.
The state isn’t running out of cash. And there are 7 months to go in this fiscal year. But note that these numbers are coming in at a time when the governor and the Dept. of Finance are preparing next year’s budget for presentation in early January. So don’t expect great windfalls for UC when that budget comes out.
You can find the controller’s report at http://www.sco.ca.gov/Files-EO/fy1213_nov.pdf
Like the song says: