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.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
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.