Tuesday, August 09, 2011

Dark days are over.

Oh wait.

SACRAMENTO – State Controller John Chiang today released his monthly report covering California's cash balance, receipts and disbursements in July, showing revenues were down $538.8 million (-10.3 percent) below projections from the recently passed state budget.

"While July's revenues performed remarkably similar to last year's, they still did not meet the budget's projections," said Chiang. "While we hope for better news in the months ahead, every drop in revenues puts us closer to the drastic trigger cuts that could be imposed next year."

Income taxes were above projections by $89 million (2.9 percent) in July. But sales taxes were down $139.4 million (-12.5 percent), and corporate taxes were down $69.5 million (-19.3 percent) in the same month."

This is important because California just pulled those loans from "Wall Street" on revenue anticipation. If things sucked in July, I can only imagine how much August is going to suck.

Also, in order to close the budget this year, trigger cuts were installed if revenue was vastly off projections.

Someone please tell PMB to send more money to these banks. Read more here.

The notes mature in November. But as we see from today - nothing matters in this market. I'm sure it will be just fine.

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