Disappointing State Revenues
The state controller’s cash report for the fiscal year through April is now out. Despite the blip in tax receipts in April due to the seasonal impact of the income tax, revenues are down by over $3 billion compared to what the governor had forecast in January. Compared to what the budget enacted last June for 2011-12 had projected, we are down over $5 billion. How all of this will play out with regard to the governor’s tax initiative in November is unclear. The kind of cash problems that led to IOUs in 2009 are unlikely to repeat. Thanks to…
