State's cash position worsens

March was a lousy month for California's coffers, with total receipts coming in at $370 million below estimates. And that's in spite of much better-than-expected income tax collections. The revenue drop was caused by worse-than-expected corporate tax receipts, and Gov. Brown's canceled leaseback of state properties that would have brought in $1.2 billion. Brown said the property sales would have ended up being a bad deal for the state. Short-term, the money could have come in handy. From Controller John Chiang's press release:

"California's economic recovery is clearly underway but is threatened by a budget gridlock that could halt job-producing public works projects, further erode the State's credit ratings, and delay billions of dollars in payments."

Here's the controller's analysis.