Revenue from personal income taxes falls $2 billion short

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Governor Jerry Brown and California lawmakers are getting some grim news on the financial front as April draws to a close.

Governor Jerry Brown and California lawmakers are getting some grim news on the financial front as April draws to a close.

Personal income tax revenues fell about two billion dollars short of projections during the most crucial month for the state budget – tax month.

Jason Sisney with the non-partisan Legislative Analyst’s Office says April’s shortfall continues a string of months with disappointing revenues.

“The budget problem facing the state is likely to be a few billion dollars bigger than the $9 billion the governor projected in January," said Sisney. "And that means much more difficult decisions ahead, potentially."

Sisney says capital gains revenues from upper-income Californians appear to be the biggest disappointment – but corporate tax proceeds are falling short, too.

He says revenue expectations will have to be adjusted downward not just for this fiscal year — but for future years as well.

Governor Brown will release his revised budget in the next couple of weeks.