California missed its November revenue target by $806.8 million, or 10.8 percent, after a bad projection about tax proceeds from Facebook insiders and an unexpectedly high amount of corporate refunds, the state controller's office said Friday.
State budget writers assumed that Facebook insiders would sell a large batch of stock in November at $35 per share, providing a tax windfall for the state. But those insiders executed their transactions a month early, officials say, resulting in more money than expected in October but less in November.
Not only that, but until late November, Facebook shares were trading below $25.
Those factors contributed to California missing its November personal income tax target by $842.5 million, or 19 percent. The state also paid out an unexpectedly large number of business tax refunds, contributing to a $187.8 million loss in corporate tax revenue for the month.
"This serves as a sobering reminder that, while the economy is expanding, it is doing so at a slow and uneven pace that will require the state to exercise care and discipline in how its fiscal affairs are managed in the coming year," Controller John Chiang said in a statement.
Public-sector employers in California wouldn't be allowed to ask their employees or job applicants for access to personal social media accounts such as Twitter and Facebook, under the provisions of a measure introduced this week. Assembly Bill 25, by San Jose Democrat Nora Campos, tweaks a similar measure that sailed through the Legislature during its last session and takes effect Jan. 1.
"Big question for Jimmy Brulte ... 'Why would you want to be #CAGOP chair?' But, then again, it's a spiritual calling."
SCOTT LAY, president and CEO of the Community College League of California, via Twitter