California’s Deficit Increasing
Sacramento, CA — The State Controller says revenues in October were $810 million less than original projections.
“October’s poor revenues capped a very disappointing first four months of the fiscal year,” says John Chiang, State Controller. “Unless revenues and expenditures begin to track with projections, the state will face increasing cash pressure in the months ahead.”
Year-to-date General Fund revenues are now $1.5 billion less than anticipated.
Automatic trigger cuts will go into effect on January 1st if revenues are $1 billion less than projected. The first round would primarily impact social services and the University system.
A second round of trigger cuts goes into effect if the revenues are $2 billion less than projected, and would impact K-12 education and community colleges.