The state controller reported today that for the first four months of the fiscal year, state revenues for the General Fund fell short of what was projected in the budget by over $300 million. The shortfall was mainly in corporate taxes and sales taxes. Corporate profits can be volatile. Sales, as a proxy for consumption, however, represent the underlying economy. And note that Gov. Brown tends to push the legislature toward 'conservative" revenue projections for budget enactments as a way to hold down spending. Of course, four months does not a year make. So let's see what happens as the fiscal year progresses.
The controller's report through October is at:
http://sco.ca.gov/Files-ARD/CASH/04%20October%202016.pdf
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