Governor Jerry Brown's new budget proposal for the state is built on the assumption that Californians will report lots of capital gains when they file their taxes in April. The governor expects that taxes from those gains will fill budget holes, but now there's a big question about some of the Governor's projections.
The state's legislative analyst says the governor is being too optimistic. California's tax revenues will fall $6.5 billion short of Gov. Jerry Brown's prediction, even with an expected boost from Facebook's initial public stock offering, and if voters approve the governor's proposed tax initiative later this year, according to a forecast released Monday.
John Myers, Sacramento bureau chief for KQED and the California Report.