California Controller John Chiang said December revenues came in $165 million below the projections in the governor’s proposed fiscal 2013 budget.
“While we saw positive numbers in November, December’s totals failed to meet even the latest revenue projections,” Chiang said in a statement Tuesday. “Coupled with higher spending tied to unrealized cost savings, these latest revenue figures create growing concern that legislative action may be needed in the near future to ensure that the state can meet its payment obligations.”
When compared to Gov. Jerry Brown’s new budget proposal, personal income taxes fell 1.4%, or $69 million, while corporate taxes dropped 1.4%, or $19.5 million. However, December sales taxes came in 1.1%, or $17 million, above estimates.
Last week, Brown unveiled a $92.6 billion plan for fiscal 2013 that attempts to tackle a deficit of $9.2 billion with cuts and tax hikes.