California’s budget situation became more precarious this week after revenues again fell short of projections in the budget.
Revenue in September came in $301 million below what was projected in the budget that was passed at the end of June, which relied on $4 billion of future revenue to help close the budget gap, according to state Controller John Chiang.
“For better or worse, the potential for revenue shortfalls is precisely why [Gov. Jerry Brown] and the Legislature included trigger cuts in this year’s state spending plan,” Chiang said in a statement Monday.
If the revenues that were forecast in the budget fail to appear, cuts will be triggered in tiers that are determined by the size of the shortfall.
The controller said year-to-date general fund revenues are now $705 million short of estimates.
The Legislative Analyst’s Office and the Department of Finance will produce new revenue forecasts for fiscal 2012 in November and December that will determine if cuts are needed, and if so, how much.
