November 10, 2011 / 7:56 PM / 8 years ago

UPDATE 1-California Oct. revenue misses forecast by $810.5 mln

Nov 10 (Reuters) - California’s revenue in October came in $810.5 million below its projected level in the state budget, increasing pressure on its leaders to impose more spending cuts to keep the state’s books balanced, the state controller said on Thursday.

“October’s poor revenues capped a very disappointing first four months of the fiscal year,” State Controller John Chiang said in a statement. “Unless revenues and expenditures begin to track with projections, the State will face increasing cash pressure in the months ahead.”

Provisions in the state budget call for spending cuts, including cuts to politically popular education programs, if state leaders determine soon that the revenue trend projected in the state budget is faulty.

Governor Jerry Brown and fellow Democrats who control the legislature in June agreed to a budget that closed a deficit of about $10 billion with spending cuts, some fees and the expectation of a revenue surge that would bring $4 billion into the state’s coffers.

Chiang’s office in its monthly revenue report said the state’s revenue is falling short of expectations, noting that revenue since the July 1 start of the fiscal year through October is about $1.5 billion below the budget’s outlook.

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