August tax revenue in California came in $65 million below a budget forecast of $6.23 billion, according to the Department of Finance.
The department said year-to-date revenues are $596 million below an expected $12.09 billion of tax collections.
If revenue fails to line up as expected during the year, budget cuts will be triggered at various stages, depending on the severity of the shortfall.
The triggers put into the budget enabled the state to close an almost $10 billion gap by estimating revenue would come in higher this year.
Finance officials say the bulk of the tax revenue is expected to come from personal income taxes and corporate taxes from December through June.
In November and December, the department and the Legislative Analysts Office will create new revenue forecasts for the fiscal year that will determine if budget cuts will be triggered.
Controller John Chiang has said “everything must go right” for the state to avoid the trigger cuts.
