Through the first quarter of fiscal 2010, California general fund revenue was more than $1 billion below projections, according to state Controller John Chiang’s monthly cash report released Friday.
The state’s three largest sources of revenue were all below estimates made in connection with a revised budget adopted in July, the controller reported.
September personal income tax revenues recorded the poorest performance, down more than 17% below projections.
For the first three months of the fiscal year, general fund revenue was down by $1.1 billion compared to the estimates in the July budget.
“Revenues more than $1 billion under estimates and recent adverse court rulings are dealing a major blow to a budget that is barely 10-weeks old,” Chiang said in a news release. “While there are encouraging signs that California’s economy is preparing for a comeback, the recession continues to drag state revenues down. I urge lawmakers and the governor to prepare for more difficult decisions ahead.”