Tuesday, March 7, 2023

California revenue lower than expected

California's revenues are lower than expected, with February's personal and corporate income taxes falling $1.2 billion below the administration's January budget projection. 

This is due to factors such as large corporate tax refunds costing $796 million more than projected and layoffs in the tech and finance sectors. Policymakers may need to consider dipping into reserves or raising revenues, including trimming corporate tax breaks, to balance the budget. 

However, working with uncertain numbers due to tax filing deadline extensions could complicate the budgeting process. Scott Graves, director of research at the California Budget Center, warns of potential corrections down the road. Source CalMatters

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