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A good end to a rough year for California taxes

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California ended the last fiscal year on a high note, raking in 5.6% more tax revenue than expected in June.

Income taxes were responsible for most of the boost, coming in at 8.4% above projections.

The details were released in a report from Gov. Jerry Brown’s Department of Finance, and they show that revenue is outpacing revised estimates made in May and codified in the budget signed last month.

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But that doesn’t mean the last several months weren’t financially difficult for California. When revenue is compared with expectations set when the 2011-12 budget was approved, taxes fell short by 4.8%, or $4.2 billion.

A dismal April, the most important month for income-tax collections, was responsible for a large chunk of that gap. That helped increase this year’s budget deficit from $9.2 billion to an estimated $15.7 billion.

Brown says the budget he signed last month will cover that shortfall, but only if voters approve more than $8 billion in tax increases in November.

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Jerry Brown signs budget that relies on voter-backed tax hikes

-- Chris Megerian in Sacramento
twitter.com/chrismegerian

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