Days after the state’s biggest revenue month fell significantly short of his office’s expectations, Gov. Jerry Brown released a $169.3 billion revised spending plan Friday that assumes nearly $2 billion less revenue through June 2017, with the governor warning that people need to prepare “for a time of necessity.”
The revised plan estimates that state revenue will be down by $1.9 billion compared to January plan, after April tax returns that came in more than $1.2 billion less than earlier estimates as well as sluggish tax revenue. Yet it includes no spending cuts compared to the January plan, with the drop covered by corresponding drops in required transfers into state reserves and various funding formulas.
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