The nonpartisan LAO has projected a $1.9 billion deficit for California for remainder of year
Image:
The nonpartisan Legislative Analyst's Office has projected a $1.9 billion deficit between now and June 2014. California missed its November revenue target by $806.8 million, or 10.8 percent, after a bad projection about tax proceeds from Facebook insiders and an unexpectedly high amount of corporate refunds, the State Controller's Office said Friday.
State budget writers assumed that Facebook insiders would sell a large batch of stock in November at $35 per share, resulting in a tax windfall for the state. But those insiders executed their transactions a month early, state officials say, resulting in more money than expected in October but far less in November. Not only that, but until late November, Facebook shares had been trading below $25 per share.
Those factors contributed to California missing its November personal income tax target by $842.5 million, or 19.0 percent. By comparison, the state exceeded its October target by $378.4 million.
California also paid out an unexpectedly large number of business tax refunds, contributing to a $187.8 million loss in corporate tax revenues for the month. Sales taxes were $99 million above expectations.
"November's disappointing revenues stand in stark contrast to recent news that California is leading the nation in job growth ...
Read more here: http://blogs.sacbee.com/capitolalertlatest/2012/12/california-revenues-lag-due-to-facebook-corporate-refunds.html
---
Syndicate
Recent comments