Capitol Alert
The latest on California politics and government
January 7, 2011

State revenues ended $562.5 million below budget expectations for the month of December, or 5.8 percent, according to Controller John Chiang.

Of the big three tax sources, corporate taxes dragged down revenues, finishing $529.9 million, or 25.6 percent, below estimates. The controller’s office suggested that was partly because corporations accelerated payments in November, when the state took in $263 million more than expected in corporate payments.

“It is clear that next year’s budget deficit will not be solved by a surge in revenues,” said Chiang in a statement. “Rather than hope for a miracle, lawmakers must take the tough actions necessary to bring the budget back into balance.”

To read entire story, click here.