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Tech Layoffs Hit California Revenue With 12% July Shortfall

  • Personal income tax collections lag state budget forecasts
  • Some of the falloff tied to job cuts, finance department says
Pedestrians walk past the California State Capitol building in Sacramento.

Pedestrians walk past the California State Capitol building in Sacramento.

Photographer: David Paul Morris/Bloomberg
Updated on

California collected 12% less in revenue than it expected in July, indicating that state coffers are taking a hit from a slowing economy and a cooldown in the once-booming technology industry.

Cash totaled $9.2 billion in the first month of the fiscal year, almost $1.3 billion below the state’s budget forecast, according to a bulletin from the California Department of Finance. The amount of personal income tax withheld from paychecks fell short of expectations -- by 10% in July and 5.8% in June.