Getting any of those Fridays back next July? Don’t bank on it.

State Revenues Continue Sharp Drop Bigger Budget Deficit Feared For 2010-2011

State’s 3 Sources of Revenues All Dropped Below What Was Budgeted

The State’s three largest sources of revenue fell below estimates made in the revised 2009-2010 State Budget for the month of September.
When adjusted to account for payments made in September that were previously delayed or issued as Registered Warrants in July and August:
• Personal income taxes for the month were $934 million below estimates ( -17.3%).
• Corporate taxes were down $183 million (-10.5%)
• Sales taxes came in $99.8 million lower than expected (-4.5%).

Chiang said the recession continues to drag state revenues down, though he believed there are some signs to indicate of an eventual turn around in the state’s economy – though not anytime soon.

“Revenues more than $1 billion under estimates and recent adverse court rulings are dealing a major blow to a budget that is barely 10-weeks old,” said Controller Chiang. “While there are encouraging signs that California’s economy is preparing for a comeback, the recession continues to drag State revenues down. I urge lawmakers and the Governor to prepare for more difficult decisions ahead.”