Monday, November 10, 2014
Good News/Bad News on State Budget
So what is the bad news? The sources of the extra revenue are the volatile income and corporate taxes. Sales tax revenue is below the forecast estimates. So the state budget is especially vulnerable to anything that might negatively affect financial markets - the source of capital gains in the income tax - or corporate profits. It appears that a lot of the good news is at the upper end of the income scale. Ordinary folk, whose purchases are reflected in sales tax revenue, are not doing quite so well.
You can find the cash report through October at http://sco.ca.gov/Files-ARD/CASH/fy1415_november.pdf