State revenue fell off a cliff in April, with an over $6 billion decline from last year (pdf):
Also, the revenue estimates from the latest budget are now inoperable, so the state had to borrow from Golden 1 to make ends meet:
On April 30, the State’s final cash position was actually $1.1 billion below the point expected in the Budget. While special funds recently opened up for cash-flow borrowing produced $1.1 billion over the $2 billion expected in the budget, and $500 million in short-term loans were secured from the Golden One Credit Union, the additional cash was not enough to offset higher than expected disbursements and revenue deterioration.Despite this monthly cash shortfall, and what can only be called epic revenue decline, the Controller sees "signs of hope:"
California has yet to rid itself of its economic woes. In April, personal income taxes, corporate taxes, and sales taxes came in well below the Budget Act estimates for the month.When the hard numbers are dire, deteriorating rapidly, and site-specific, and the "encouraging signs" are bad, only-slightly-less-dire, and diffuse, you know they're grasping at straws.
These numbers appear fairly grim, but there are encouraging signs that the State’s situation is reaching bottom. Although sales tax revenues were down by more than 50% as compared to last April, consumer spending increased by 2.2% nationwide in the first quarter of 2009. Additionally, retail sales have stabilized in the first three months of this year on a seasonally adjusted basis...
Externally, there are additional signs of hope. The real estate market is beginning to show signs of life and home sales across California are increasing at a rapid pace. There were over 36,000 sales of new and existing homes in March. The large inventory of foreclosed homes that has mounted over the past few years is beginning to be absorbed - over 57% of existing homes sold in March were foreclosure properties.