California Tax Revenue Decline Inches State Toward Trigger Cuts
BusinessWeek

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By Michael B. Marois and James Nash

Oct. 11 (Bloomberg) -- California took in less revenue than needed to stay within its budget last month, leaving the most- populous U.S. state at risk of triggering automatic cuts to universities and caregivers for the elderly and disabled.

The state had $705 million less on Sept. 30 than Governor Jerry Brown and Democrats projected in their budget for the year that began July 1, Controller John Chiang said yesterday. The $86-billion spending plan included a series of reductions to be activated if revenue falls below certain levels.

The first tier, if the shortfall is $1 billion, would trim University of California and California State University budgets by $100 million each, increase community-college fees by $10 per unit and cut in-home services for the elderly and disabled who need help. In December, Brown’s finance department will estimate whether the rest of the year’s revenue can meet the original projection.

“The potential for revenue shortfalls is precisely why the governor and Legislature included trigger cuts in this year’s state spending plan,” Chiang said in a statement. “September’s revenues alone do not guarantee that triggers will be pulled. But as the largest revenue month before December, these numbers do not paint a 

hopeful picture.”

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Note to Reader(s): more info on Bonded Indebtedness and Orchestrated Budget Crisis, go to www.planetarysolutionaries.org, click :Ongoing Projects; California Bondage.