California short $1 billion in tax revenue

“Personal income tax receipts coming into the state in January fell $1.3 billion below Gov. Arnold Schwarzenegger’s revenue estimates in the spending plan he released last month, the state controller said Tuesday… ‘Tax payments are down about $1 billion, and we don’t yet have the source of that decrease’, said Controller John Chiang, holding a news conference at the state’s tax-collection center, where 2006 tax returns have begun to trickle in. Chiang speculated that the state’s slumping housing market might be a cause of the revenue decline.”