California revenues decline amid economic worries

By ADAM BEAM
Associated Press

SACRAMENTO, Calif. (AP) — The good times might soon be over for California’s government. Tax collections in the nation’s most populous state have fallen below expectations for four months in a row. The nonpartisan Legislative Analyst’s Office says there is an 80% chance California will be about $8 billion short when its fiscal year next summer. In California, the top 1% of earners pay about half of all state income taxes. That makes the state more vulnerable to a declining stock market. Some budget experts say California is more prepared for a downturn because it has more than $37 billion in reserve.