The collapse of the housing market is now starting to affect California's finances. You'll be seeing a whole lot more of this type of stuff for the next ?? years:

November 14, 2007 Tax receipts down, deficit up Tax revenues for the current fiscal year continue to sag, as California is $1.1 billion below projected revenues only four months into the fiscal year, according to the latest figures released by the Department of Finance. The state had projected to bring in $29.2 billion so far. In October, the most recent month for which data is available, the state collected $324 million less in taxes than forecast. For the month, revenues were down in every category, with the biggest hits coming from lower-than-expected income taxes and sales taxes, both $159 million below forecast for the month. Corporate taxes, as well as insurance, estate, alcoholic beverage, and tobacco taxes, were off marginally. The Department writes, "The ongoing housing slowdown continues to hamper the California economy." That's all adding up to a $10 billion projected deficit in the next fiscal year, according to a new Legislative Analyst's Office report released today. See the full finance bulletin here. Posted by Shane Goldmacher on November 14, 2007 09:59 AM