California Cracking

The economy, not the ground. Apparently overlooked in the general euphoria is that the Golden State’s economy is falling short of the hopium-based revenue projections. No, no recession here.

California tax collections since the start of the fiscal year have fallen $1.5 billion behind projections, raising concern that the most-populous U.S. state will face automatic spending cuts.

Revenue was $810.5 million less than budgeted in October, bringing the total to 6.2 percent below expectations for July 1 through Oct. 31, according to figures released today by Controller John Chiang. Since the start of the fiscal year, the state has spent $1.7 billion more than it budgeted.

Revenues under plan, spending over plan. When will they ever learn?

As goes California, goes the rest of the country, typically.

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