California is likely to see revenue from its three major tax sources fall short of forecasts during the current fiscal year as a slowdown in the economy and the slumping stock market chip away at what had been surging tax collections.
In a post Monday, Deputy Legislative Analyst Brian Uhler estimated that the state’s revenue from personal-income, corporation and sales taxes will likely trail projections by $5.5 billion for the year that ends in June 2023. He said the outlook is highly uncertain, however, and that the collections may range from $26 billion below budget estimates to $15 billion over them.
In May, “we cautioned that economic indicators were suggesting a slowdown could be on the horizon,” Uhler wrote. “More recent economic data has continued to point in this direction.”
