For those Californians who didn't hear or take seriously governor Arnold Schwarzenegger's warning that the golden state's "Day of reckoning is here," state controller John Chiang today released his monthly report detailing California's cash balance. The news from Chiang is not good.
For the month of May, the State's revenue was even worse than Schwarzenegger had planned, $827 million below the latest projections found in the Governor's May Budget Revision.
Personal income taxes were $475 million below, or 23.0 percent below estimates in the governor's May Revision. Corporate taxes were down $84.4 million, or 25.8 percent less, while sales taxes fell by $109 million, or 3.3 percent lower than expected.