California Revenues Beat Projections In August

SACRAMENTO (KCBS) – California's cash flow numbers are in with both good and bad news from the month of August.

First the good news as state revenues surpassed budget estimates in August by a little more than 2.1 percent.

"We actually came in above estimates to the tune of $134.9 million," said State Controller John Chiang.

KCBS' Mark Seelig Reports:

But Chiang said that the state is still more than $400 million in the hole, brought on mainly by a lousy month of July.

"We were $539 million short of the budget at estimate," he said.

Chiang said they are projecting $7.6 billion in revenues this month, one of the most important for the state.

"September is a very significant month. It is the largest month expected for tax revenues before the Department of Finance has to make the decision whether to use the triggers," Chiang said.

Triggers being more budget cut decisions Chiang said could further erode California's quality of life.

"We're talking about the possibility in a cut of the school year by seven days," he said. "That's devastating for the future of Californians."

A decision must be made by December 15 on whether to cut more program funding.

(Copyright 2011 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)