California August Revenue $65 Million Below Forecast, Finance Agency Says

Tax revenue in California missed projections in August by $65 million, or about 1 percent, the state Finance Department reported in a bulletin.

The most-populous state now is $596 million behind financial targets for the year that began July 1, or about 4.9 percent, the bulletin said. If California is $1 billion or more behind revenue forecasts in December, the state would cut funding for universities, social services and other programs under a series of “triggers” written into the budget.

The Finance Department revenue estimate differs from figures released by state Controller John Chiang 10 days earlier. Chiang, a Democrat, said August revenue had come in ahead of projections by 2.1 percent.

“Insurance tax revenues were $75 million below the month’s forecast but this was due to a timing issue and that amount was recouped in the first few days of September,” H.D. Palmer, a Finance Department spokesman, said in an e-mail message accompanying the bulletin.

To contact the reporters on this story: James Nash in Sacramento at mmarois@bloomberg.net;

To contact the editor responsible for this story: Mark Tannenbaum at mtannen@bloomberg.net

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