California housing slump worsening state budget picture |

California housing slump worsening state budget picture

SACRAMENTO (AP) ” California tax revenue dropped precipitously in September as the slumping housing market pushed up unemployment and home sales slid for the sixth straight month.

California collected $809 million less than expected. The drop, about 7 percent below projections, nearly doubles the cash shortfall the state recorded for all of last year.

The state’s finance director said revenue could rebound as residents file late income tax returns. But he said the drop suggests California will grapple with a larger operating deficit than expected in the next fiscal year.

The state’s shortfall already was forecast to be about $6 billion.

Copyright 2007 The Associated Press.

Support Local Journalism


Support Local Journalism

Readers around Lake Tahoe, Truckee, and beyond make the Sierra Sun's work possible. Your financial contribution supports our efforts to deliver quality, locally relevant journalism.

Now more than ever, your support is critical to help us keep our community informed about the evolving coronavirus pandemic and the impact it is having locally. Every contribution, however large or small, will make a difference.

Your donation will help us continue to cover COVID-19 and our other vital local news.

For tax deductible donations, click here.

Start a dialogue, stay on topic and be civil.
If you don't follow the rules, your comment may be deleted.

User Legend: iconModerator iconTrusted User