Revenue for April, the biggest revenue month because it is when most Californians pay their taxes, lagged projections by nearly 30% — roughly $3 billion, according to state officials.
“One pillar of the budget solution just got destroyed, and there’s nothing that can happen between now and June that can get back the $3 billion,” said Stephen Levy, director of the Center for Continuing Study of the California Economy.
The retraction could mean even deeper cuts in government services — schools, healthcare for the poor and services for the elderly. Lawmakers may also be forced to consider more reductions in funds for public universities, as well as tax hikes. (Source)
Who could have known?