---
[ ARCHIVE ](https://mail.citywatchla.com/archive)
# Revenues Fall Short; Future Iffy for California’s Budget
August 11 2011
Written by Paul Hatfield.
[](https://www.addtoany.com/share)
PERSPECTIVE - The market rebounded on Tuesday, but way short of the losses it accumulated over the last several days.
Buyers were bargain hunting and may be rewarded down the line with decent gains for their moves. However, it is unlikely future gains will offset the capital losses, almost all of which will be reported on tax returns this year.
Flashback to Governor Brown’s aggressive revenue projections: about $4 billion in additional revenues were factored in the state’s budget based on robust capital gains related tax revenues from the prior year.
Can we expect the next several months to make up for the recent bludgeoning?
It’s unlikely given the combination of events occurring throughout the world - impending defaults in Southern Europe and Ireland, a slowdown in China designed to arrest an overheated economy.
If capital gains are flat, what about other tax revenue?
Growth in taxes on ordinary income, along with sales and property taxes, are likely to remain stagnant as long as unemployment remains high.
Even if the Chinese continue to spend, along with Brazil and India, the domestic unemployment picture is unlikely to improve. Even with strong corporate profits, layoffs are likely to persist as companies shift resources to growing foreign markets. [\[link\]](http://www.latimes.com/business/la-fi-consumers-overseas-20110808,0,6193915,full.story)
Stimulus spending does not instill consumer confidence, because many of the jobs created by infrastructure improvements – a major component of stimulus – don’t have legs to last beyond a couple of years. Shaky employment prospects do not encourage spending.
So, get ready for more cuts.
*(Paul Hatfield is a CPA and serves as Treasurer for the Neighborhood Council Valley Village. He blogs at Village to Village and can be reached at: phinnoho@aol.com )* –cw
Tags: California budget, Governor Brown, Southern Europe, Ireland, China, Chinese, Brazil, India
CityWatch
Vol 9 Issue 64
Pub: Aug 12, 2011
[  ](https://mail.citywatchla.com/component/banners/click/107 "LA DWP | Save $4K, Green | Priority Ad")
[  ](https://mail.citywatchla.com/component/banners/click/98 "Donna Tryfman - HS1-1")
[  ](https://mail.citywatchla.com/component/banners/click/82 "LA DWP #2 (Power Savers)")
[  ](https://mail.citywatchla.com/component/banners/click/111 "David DeJute Campaign")
[  ](https://mail.citywatchla.com/component/banners/click/97 "Home - LA DWP #2 (Pay Water Bill Help)")
[  ](https://mail.citywatchla.com/component/banners/click/112 "Anna Reitano Vertical R. Col")
## Get The News In Your Email Inbox Mondays & Thursdays
Message
[  ](https://mail.citywatchla.com/component/banners/click/110 "Something You Should Know")
[  ](https://mail.citywatchla.com/component/banners/click/113 "Rhonda Haymon campaign")
---
## Featured CityWatch Stories
[  ](https://mail.citywatchla.com/los-angeles/33444-lahsa-is-gone-but-the-homeless-industrial-complex-lives-on)
### [LAHSA Is Gone, but the Homeless-Industrial-Complex Lives On](https://mail.citywatchla.com/los-angeles/33444-lahsa-is-gone-but-the-homeless-industrial-complex-lives-on)
HOMELESSNESS - Los Angeles’s homelessness program is in complete disarray, undermined by systemic gridlock, structural…
[  ](https://mail.citywatchla.com/neighborhood-politics/33434-karen-bass-trails-in-reelection-race-can-she-turn-it-around)
### [Karen Bass Trails in Reelection Race — Can She Turn It Around?](https://mail.citywatchla.com/neighborhood-politics/33434-karen-bass-trails-in-reelection-race-can-she-turn-it-around)
WESTSIDE - As of September 27, 2026, Karen Bass is in a substantially weaker position than she was entering the June pr…
[  ](https://mail.citywatchla.com/finance/33442-the-settlement-bill-nobody-is-managing-inside-los-angeles-countys-sheriff-litigation-tab)
### [The Settlement Bill Nobody Is Managing — Inside Los Angeles County's Sheriff Litigation Tab](https://mail.citywatchla.com/finance/33442-the-settlement-bill-nobody-is-managing-inside-los-angeles-countys-sheriff-litigation-tab)
THE NAVARRO REPORT - Last month, the Los Angeles County Board of Supervisors approved a $12.5 million settlement over t…
[  ](https://mail.citywatchla.com/housing/33413-with-national-implications-corporate-landlords-take-aim-at-three-pro-rent-control-campaigns-in-california)
### [With National Implications, Corporate Landlords Take Aim at Three Pro-Rent Control Campaigns in California](https://mail.citywatchla.com/housing/33413-with-national-implications-corporate-landlords-take-aim-at-three-pro-rent-control-campaigns-in-california)
HOUSING IS A HUMAN RIGHT - Corporate landlords and their high-powered lobbying group, the California Apartment Associat…
[  ](https://mail.citywatchla.com/voices/33431-the-unflinching-daily-horror-in-the-west-bank)
### [The Unflinching Daily Horror In The West Bank](https://mail.citywatchla.com/voices/33431-the-unflinching-daily-horror-in-the-west-bank)
THE WEST BANK - More often than not, I find myself at a loss for words to convey Israel’s genocide in Gaza and the rele…
---
## [ ARCHIVE ](https://mail.citywatchla.com/archive)
[  ](https://mail.citywatchla.com/archive/15339-early-intervention-and-jobs-are-key-to-stemming-chronic-homelessness-in-los-angeles)### [Early Intervention and Jobs are Key to Stemming Chronic Homelessness in Los Angeles](https://mail.citywatchla.com/archive/15339-early-intervention-and-jobs-are-key-to-stemming-chronic-homelessness-in-los-angeles)
### [Tucker Carlson and Gay Rightwinger Blame California Wildfires On Hiring LGBTQ People](https://mail.citywatchla.com/archive/18755-tucker-carlson-and-gay-rightwinger-blame-california-wildfires-on-hiring-lgbtq-people)
### [Anti-LGBTQ Veep Just Can’t Stop Talking about Mayor Pete](https://mail.citywatchla.com/archive/17690-anti-lgbtq-veep-just-can-t-stop-talking-about-mayor-pete)
[  ](https://mail.citywatchla.com/archive/15316-news-pulse-corrupt-system-reason-for-not-voting-in-2018-majority-wants-more-than-two-parties)### [NEWS PULSE: ‘Corrupt System’ Reason for Not Voting in 2018 … Majority Wants More Than Two Parties](https://mail.citywatchla.com/archive/15316-news-pulse-corrupt-system-reason-for-not-voting-in-2018-majority-wants-more-than-two-parties)
[  ](https://mail.citywatchla.com/archive/10245-dead-dog-set-on-fire-sparks-fears-for-strays-in-los-angeles)### [Dead Dog Set on Fire … Sparks Fears for Strays in Los Angeles](https://mail.citywatchla.com/archive/10245-dead-dog-set-on-fire-sparks-fears-for-strays-in-los-angeles)