According to the California Department of Finance, the continuous decline in the state’s tax revenue is the main reason for the widening of California’s budget gap.
Administration of California Department of Finance (Photo: californiaglobe)
“The State Tax Revenue Will Be Below Projections” Says California Department Of Finance
SOURCE– A larger budget gap is expected next year as the continuous decline in state tax revenue is being experienced by the state according to the California Department of Finance.
The California Department of Finance projected that due to the unexpected 6-month extension deadline in the state’s tax filing, the state would collect $42 Billion at most in October. California Department of Finance said that the sum represented approximately a quarter of the overall estimated personal income tax for this fiscal year, as well as one-third of the corporation tax.
But, as of October 25,2023, the California Department of Finance only collected a total of $18 Billion.
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California Department Of Finance: Newsom And Lawmakers Needs To Fill A Wider Budget Gap Next Year
In an article by Yahoo News, California Department of Finance said that if the revenue collected in the coming weeks fail to catch up to its forecasts, lawmakers and California Governor Gavin Newsom will have to fill a bigger budget gap next year than what they had anticipated.
The Spokesman of the California Department of Finance said that the state may still wind up closer to its target by the time the California Department of Finance releases its monthly revenue report this November.
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