With all the recent campaigning about what will happen if the special election doesn't pass, there's another side of the rather grim situation. Namely that we have a budget deficit that will require drastic action either way. It's been said to be at least $8 Billion, but the tax revenues suggest that might be a tad bit optimistic.
State Controller John Chiang said today that California's revenue picture continued to deteriorate in March, thanks to a sharp decline in retail spending statewide.
In his monthly report detailing California's cash balance, receipts and disbursements in March, Chiang said general fund revenue in March was down $178 million, or 5.2 percent, from estimates in the recently adopted 17-month state budget.
"Unfortunately sales taxes continue to be hammered by diminished retail spending across the state," Chiang said in a news release. (CapAlert 4/10/09)
On the plus side, personal income tax and corporate tax revenues are slightly higher than expected. Controller John Chiang is fairly upbeat that revenues will meet projections from the budget compromise, but with the craptastic economy it is far from certain.
The budget is real, and there will be additional, excruciating, cuts. I'll leave you to decide how you think this would factor into your decision on the special election. I'm just like FoxNews, I report, you decide. Or something like that. |
