the visible hand

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CA state revenue falls far short of projections

Posted by ecoshift on April 14, 2009

State revenue falls far short of projections
Wyatt Buchanan, Chronicle Staff Writer
Tuesday, April 14, 2009
(04-14) 04:00 PDT Sacramento —

In another sign that the California government’s money problems appear to be deepening, two reports show that the state’s revenue in March fell hundreds of millions of dollars short of estimates in the 2-month-old budget.

The reports come as Wednesday’s income-tax filing deadline looms, perhaps the year’s most important week for revenue in the state – when more than a billion dollars a day can flow into state coffers.

“These numbers clearly reflect the fact that we are working our way through the most significant economic downturn in years,” said H.D. Palmer, spokesman for the California Department of Finance.

The agency reported Monday that the state’s revenue was $415 million below what was forecast in the budget deal in mid-February. For the year, the budget is off by $737 million, according to the finance department.

Those estimates come on the heels of a report Friday from State Controller John Chiang that found revenue down $178 million for the month…

The shortfall comes as unemployment continues to rise, new home construction is faltering and home prices continue to fall…

Under current worst-case scenarios, including the failure of three budget-related measures on the May 19 special election ballot, lawmakers may be looking at a $14 billion budget shortfall.

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