December tax revenues dip slightly from Brown's estimate
State tax revenue dipped in December, falling $165.2 million short of Gov. Jerry Brown’s projections, according to a report released today by the state controller.
“While we saw positive numbers in November, December’s totals failed to meet even the latest revenue projections,” said Controller John Chiang in a statement. “Coupled with higher spending tied to unrealized cost savings, these latest revenue figures create growing concern that legislative action may be needed in the near future to ensure that the state can meet its payment obligations.”
Revenue fluctuates throughout the year, with shortfalls being erased or exacerbated month to month. Brown’s Department of Finance pointed out that the gap is less than a 2% drop off from the state’s $8.41-billion revenue projection for December.
“I don’t know if infinitesimal is the right word, but it’s an extremely small variance,” said H.D. Palmer, a spokesman for the department.
-- Chris Megerian in Sacramento
Caption: State Controller John Chiang and Gov. Brown in 2011. Credit: Brian van der Brug / Los Angeles Times