May
29
California’s Recovery Loses Luster as Tax Increases Set to Lapse
By-
Tax-collection forecast cut by $1.9 billion as growth cools
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Era of deficits may return if voters don’t extend tax increase
California’s three-year boom run is showing signs of fatigue.
Shaking off recession-era comparisons to Greece, the most-populous U.S. state rebounded with surpluses and an economy fueled by the fast-growing technology industry, which garnered it eight bond-rating upgrades.
Governor Jerry Brown is now forecasting that revenue growth is slowing along with the economy after April’s income-tax collections lagged expectations, in part because of the sputtering stock market. Even if voters in November decide to keep a temporary income-tax increase from ending — a measure that Brown hasn’t endorsed — the budget would “barely be balanced,” his administration said this month…
California’s Recovery Loses Luster as Tax Increases Set to Lapse
