Business & Economy

State gets $2 billion in unexpected tax revenue

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California’s brought in about $2 billion in tax revenue it hadn’t expected.

State finance department spokesman HD Palmer says that will help California’s effort to close a $15 billion deficit. But, he adds, that a number of issues may still affect that spending gap.

“If we have more kids projected in K through 12 schools, more people enrolled in health and human services programs, more prisoners in our state prison system than we projected in January, then that’s going to add to cost and make that gap number grow larger,” Palmer explains.

Republicans say the extra revenue demonstrates that the state doesn’t need to extend some temporary tax increases. But Palmer says the governor is sticking with his plan to place a tax extension measure before voters.

Lawmakers earlier this year passed $11 billion in spending cuts and other budget fixes.