(AP) — Preliminary numbers show California's personal income tax collections were about $1 billion short of Gov. Jerry Brown's projections during the pivotal month of April.
The nonpartisan Legislative Analyst's Office says the numbers are not cause for alarm, though. The analyst says personal income taxes are always volatile, and several years of strong revenue growth have put the state in a good position to manage a drop of this magnitude.
The budget Brown signed into law relied on April income tax collections rising 4.6 percent compared with the same month last year. Instead, the analyst said Monday that they fell 2.6 percent.
He says Californians have recently reduced withholdings from paychecks and bonuses. Part of the drop may stem from a drop in the stock market earlier this year.