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California tax revenue doesn't catch up with projections

October 26, 2012 |  1:09 pm

Brown budget

California tax revenue continues to lag behind projections, according to details released Friday by Gov. Jerry Brown's administration.

The administration planned to pull in $7.1 billion in taxes in September. Instead, the state generated $6.94 billion, for a relatively small gap of 2.1%.

That places the state $379 million below where it hoped to be three months into the current fiscal year, according to administration figures.

Corporation taxes have lagged the most, falling 10.7% below projections.

The biggest blow to Brown's budget plans could come next month if voters reject the governor's tax-hike ballot measure, Proposition 30. The current budget includes an $8 billion gap that Brown expects to fill with a quarter-cent increase to the sales tax and higher levies on the wealthy.

After that, the temporary increase in tax rates is projected to generate $6 billion annually for three years, and then less in the following two years.

ALSO:

Second poll finds Gov. Jerry Brown's tax plan losing support

Gov. Jerry Brown losing reliable supporters for his tax hike

Poll shows Molly Munger chipping away at Jerry Brown's support

-- Chris Megerian in Sacramento
twitter.com/chrismegerian

Photo: Gov. Jerry Brown outlining his budget proposal in the Capitol in January. Credit: Rich Pedroncelli / Associated Press

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