California’s Tax Revenue Projections Weakening as Newsom’s Budget Revision Deadline Looms

With the state facing a record-high budget deficit, tax collections are failing to meet California Gov. Gavin Newsom’s budget proposal projections, which could put further pressure on the state’s finances. As of April 25, the state’s franchise tax board is showing personal income tax collections on track to approximately match estimates for the month. However, corporate tax revenues of $4.16 billion equate to more than $500 million below forecasts for the month and are off by $1.4 billion for the fiscal year. Some economists point to disruptions in the technology industry—with thousands of California jobs slashed across several companies in recent months—as a contributing factor in declining corporate and personal income taxes....