California Is So Screwed
The State Controller has more bad news (pdf file).
Tax Revenue in March 2008
⇒ General Fund revenue in March was $618 million below
(-10.3%) the Governor’s Budget estimate for the month.
Corporate taxes were the largest contributor to this loss,
coming in $266 million under (-16.1%) the estimate. Sales
taxes were below estimate by $164 million (-7.5%) while
income taxes were $9 million above (0.5%) the Governor’s
Budget estimate. Together, the three largest taxes
(personal income, corporate and sales taxes) were $421
million below (-7.6%) the Governor’s January Budget
estimate for March. Insurance tax receipts were below the
estimate by $173 million (-70%).
⇒ Revenue in March was $833 million below (-13.4%) the
2007-08 Budget Act estimate. Income taxes were $311
million lower (-15.2%) than the Budget Act’s figures. Retail
sales revenue was below estimates by $189 million
(-8.5%). Corporate taxes were $138 million below (-9.0%)
the Budget Act estimate.
We discovered yesterday that a nice Federal judge decided that inmates (11% illegal immigrants) are Constitutionally entitled to what free citizens and legal residents are not; free healthcare. $7 billion in additional borrowing this fiscal year mandated.
The numbers above are not a cup of black coffee to sober up the party boys in Sacramento. These are a OMFG 2x4 to the brain bucket hit. The idea of calling what I now judge to be a $22 billion deficit a $9 billion deficit hinged on several things that are not happening. We'll go into each in detail but the failure of the term limits extension has hardened both extremes, the lending environment is bad and getting worse and plain old there isn't enough money to cover anticipated debt service and expenditures in a recession.
N.B. The picture is from "Titan A.E." discussing how "humanity is circling the drain." Apropos n'est pas?