California’s Quarterly Tax Revenue Falls Below Projections

From Bloomberg Businesweek:

Oct. 10 (Bloomberg) — California’s revenue for the fiscal year that began three months ago has fallen $705 million below what Governor Jerry Brown and Democrats projected, approaching a level that may trigger automatic university spending cuts and higher community college fees.

September revenue came in $301.6 million below estimates, Controller John Chiang, a Democrat, said in a report today. July was $538.8 million less than forecast, Chiang said Aug. 9. Revenue in August was $135 million more than expected.

The $86 billion general-fund spending plan Brown signed in June included a series of cuts activated if higher revenue doesn’t materialize. The first, if the shortfall is $1 billion, would trim University of California and California State University budgets each by $100 million and increase community- college fees by $10 million.

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