California raises taxes, revenues in free fall … unexpectedly! [Darleen Click]
Wow, who woulda thunk?
State Controller John Chiang today released his monthly report covering California’s cash balance, receipts and disbursements in November 2012, showing total revenues were $806.8 million below (-10.8 percent) projections contained in the 2012-13 State budget.
“November’s disappointing revenues stand in stark contrast to recent news that California is leading the nation in job growth, has significantly improved its cash liquidity to pay bills, and even long-distressed home values are starting to inch upward,” said Chiang. [...]
The State ended the last fiscal year with a cash deficit of $9.6 billion. As of November 30, that cash deficit totaled $24.9 billion and is being covered with $14.9 billion of internal borrowing (temporary loans from special funds), and $10 billion of external borrowing.
Chiang actually believed the “happy days are here again” rhetoric? Then reality showed up right after the election to disappoint him.
Pay attention everyone, as goes Democrat-controlled California, so goes America in the era of King Barry I.
Tags: california, fiscal cliff, revenues, taxes