State Revenues Down In July

SACRAMENTO (CBS13) - More signs of trouble are ahead for California's fragile economy. State revenues are down for the month of July especially in the area of income taxes -- both personal and corporate.

The money intake from July is $541 million below estimates, which is more than half a billion dollars in lower revenues, according to the department of finance.

This is announced just two months after the California legislature passed the new budget, but already cash flow is low. If the trend continues, we're looking at potential trigger cuts to education.

The University of California and Cal State could lose funding starting January 1, and students in grades K–12 could lose up to 7 days of the school year.

We'll know more about the cuts in December.