Controller Chiang says October revenues came in more than 800-million dollars below projections. In his statement, Chiang said last month's poor showing capped a "very disappointing" first four months of the fiscal year. Year-to-date general fund revenues are now behind the budget estimates by one-and-a-half billion dollars. At the same time Chiang says spending has surpassed projections.
This year's budget deal requires the state to automatically cut spending in a number of programs if revenue falls short of projections. This news raises concerns that those "trigger cuts" will be necessary.
But the Governor's Department of Finance says those cuts won't be based on month-by-month cash revenues. Instead the state will rely on revised revenue forecasts for the whole fiscal year.
