State Controller John Chiang says February revenues came in about three percent below those in Governor Jerry Brown's budget proposal. Chiang says that's largely because the state sent out a lot of early tax refunds last month. Governor Brown says change is to be expected:
BROWN: "We try to make the best judgment we can, but we live in the global economy, we live in the American economy, and by May it could be a little better or a little worse; by November the same thing. We live in a dynamic economy. It's not like counting peas in a pod."
The legislature has rejected some of the cuts Brown has
proposed to close the nine billion dollar budget gap, but the
Governor is promising a balanced budget. Controller Chiang
says despite the latest figures, the state will be able to pay its
bills for the rest of the fiscal year, which ends June
30th.
