California revenue fell short of budget estimates by $541 million or 9.2 percent in July, the first month of the 2012 fiscal year, the state Finance Department reported.
Well, unsurprising to those of us who live here and don't have our heads buried, um, in the sand. On the beach, you know, there's lots of sand there.
What happened? Well partly it's called recession, but mostly it's called delusional budgeting. When trying to balance the budget the legislature was not allowed lacked the two-thirds majority required to raise taxes, so they just blithely raised revenue projections instead. "The economy is going to be recovering," they optimistically pretended, "so sales tax revenue will increase by leaps and bounds and that will balance our budget." It only took one month to see how well that worked out.