The state controller's statement for July, the first month of the 2013-14 fiscal year, reports that revenues were roughly $300 million below estimates in the state budget. Most of that gap was due to personal income tax net receipts. As blog readers will know, there is a lot of volatility and uncertainty involved in income tax receipts. A windfall came in around New Years which may have had to do with people taking capital gains or otherwise advancing income into the prior tax year trying to anticipate "fiscal cliff" developments. So it may be that there will be less income tax than anticipated now. The controller also reports spending down by a similar amount but since the state can hold off making payments to local governments or other government entities, it has more control over what goes out in a given month as opposed to what comes in.
Still, it's only one month. More is coming in than last year due to Prop 30 and economic recovery, etc. So don't panic. There was LESS than expected in July, but maybe in August there will be - you know - MORE: