April Revenue Target Missed — Budget Hole $3 Billion Worse
Making it almost certain the state won’t reach its April revenue projections, net income tax collections for April 29, after subtracting refunds, was $184 million.
The Employment Development Department reported receiving $58 million in quarterly withholding payments.
With one day left in the month, income tax collections are nearly $7.4 billion — still $3.1 billion short of the $10.5 billion estimated in the budget proposed by Gov. Arnold Schwarzenegger in January..
Bank and corporations taxes are also below estimates. The Franchise Tax Board reports collecting $1.4 billion through April 29 — $500 million below the expected revenue of $1.9 billion.
Every dollar below the revenue target worsens the state’s already $18.8 billion budget shortfall.
If the collections trend continues, that hole may deepen by some $3 billion.
Filed under: Budget and Economy
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