California Cash Deficit Widens to $2.5 Billion in First Half

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California tax collections since the fiscal year began in July have fallen short of the budget estimate by $2.5 billion, the state controller’s office said.

Revenue fell $1.4 billion below expectations in December alone, Controller John Chiang said in a statement today. The revenue shortfall since the start of the fiscal year had declined to $1 billion by the end of November. Chiang also said that revenue in December came in $165 million below what Governor Jerry Brown projected in his latest spending plan, unveiled Jan. 5.