California housing slump worsening state budget picture

By: Associated Press - | Friday, October 19, 2007 6:10 PM PDT ∞

SACRAMENTO -- California tax revenue dropped precipitously in September as the slumping housing market pushed up unemployment and home sales slid for the sixth straight month.

California collected $809 million less than expected. The drop, about 7 percent below projections, nearly doubles the cash shortfall the state recorded for all of last year.

The state's finance director said revenue could rebound as residents file late income tax returns. But he said the drop suggests California will grapple with a larger operating deficit than expected in the next fiscal year.

The state's shortfall already was forecast to be about $6 billion.

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Time for the state wrote on Oct 20, 2007 4:44 AM:to stop wasting the money they do have. Cut spending!!!!

Fiscal conservative wrote on Oct 20, 2007 12:17 PM:Now that the republicans are off the leash from rightwing social engineers (religious conservatives), they can return to their free market roots and legalize pot. It is California's largest cash crop and there is no good reason the state should leave this cash on the table for the black market to skim.

They will find something wrote on Oct 20, 2007 3:57 PM:else to tax us on, as Californians and jobs are leaving for other states. California will be seeing bankrutcy soon. Bring on more free programs!

And . . . wrote on Oct 21, 2007 2:05 AM:Where's the part in the story where the state's finance director talks about what he's going to do to tighten spending? I sure wish I could survive spending $6 billion more than I earn.

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