Calif. Revenues Up But Budget Still a Problem

California's tax revenue is running well ahead of earlier projections, but the governor's office says
that has not simplified the challenge of closing the state's $15.4 billion deficit.

State Director of Finance Ana Matosantos said Friday that lawmakers and Gov. Jerry Brown also have to consider possible cost increases, such as in education, health care and prisons.

Her statement comes a day after the Legislative Analyst's Office calculated that the state has received $2.5 billion more in personal income, corporate and sales taxes since the fiscal year started July 1 than projected.

The Democratic governor has proposed a mix of spending cuts and tax extensions to solve the budget gap and is expected to present a revision May 16. The additional revenue could bolster the anti-tax position of GOP lawmakers.