As state leaders hope for a surprise uptick in revenue this spring, state Controller John Chiang reported Tuesday that California lagged last month by $233.5 million, or 4.2 percent.
The state missed its target most in corporate income taxes, which were $125.8 million (8.2 percent) off the mark. Income taxes and sales taxes were each less than 2 percent behind Gov. Jerry Brown's revenue forecast. For the fiscal year that ends in June, the state is now trailing Brown's expectations by nearly $1.1 billion, or 1.9 percent.
"While revenues continue to fall short, the months ahead will be far more important to the state's finances," Chiang said in a release. "More than 35 percent of all revenues are expected in the next three months, making this the most important period for tax collection in the fiscal year."
Lawmakers are delaying significant actions on the budget until Brown issues his May budget revision. Brown is circulating a new tax initiative with larger increases on sales and wealthy earners than his initial proposal in part to give lawmakers a bigger buffer against the possibility of disappointing spring tax revenue.