We are now two months into the fiscal year and according to the state controller, actual revenue received was below the governor's estimate by something over $300 million. In addition, the state is looking at some unexpected spending for such things as housing prisoners to comply with federal court action, fire suppression, etc. Two months does not a year make and July-August are not big revenue months. However, the results are a reminder that the state is still vulnerable to negative shocks.
And this far into the fiscal year, the controller is saying: