California’s Recovery Loses Luster as Tax Increases Set to Lapse

  • Tax-collection forecast cut by $1.9 billion as growth cools
  • Era of deficits may return if voters don’t extend tax increase
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California’s three-year boom run is showing signs of fatigue.

Shaking off recession-era comparisons to Greece, the most-populous U.S. state rebounded with surpluses and an economy fueled by the fast-growing technology industry, which garnered it eight bond-rating upgrades.