SAN FRANCISCO — California Controller John Chiang said Tuesday that state revenues in March came in 4.2%, or $233 million, below estimates in the governor's proposed budget.

Revenues last month dropped 10.9%, or $657 million, compared to the same period last year, according to the controller's report.

"While revenues continue to fall short, the months ahead will be far more important to the state's finances," Chiang said in a press release Tuesday morning. "More than 35% of all revenues are expected in the next three months."

Chiang said a drop in corporate tax receipts, which fell more than 8.2%, or $125 million, short of projections, caused most of the shortfall compared to Gov. Jerry Brown's proposed budget for fiscal 2013.

Sales taxes and personal income taxes both were off by just under 2% as a result of faster taxpayer refunds, according to Chiang.

However, sales taxes fell in March more than 30%, or $623 million, compared to the same time last year.

Brown will release an updated budget in May that will adjust revenues to align with differences since his proposal in January.

The Department of Finance will release its own revenue projections, which have differed slightly from the controller's numbers because of methodology, for March later this month.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.