California ahead on cash projections

The state has taken in $1.3 billion more in tax revenues than expected so far this year, according to State Controller John Chiang. The extra money is the result of a somewhat rosier economy, but state Director of Finance Ana Matosantos tamped down expectations in terms of the still-massive deficit. "This should in no way be taken to mean that we can ease up on our efforts to close the remaining budget gap," she said. Several news reports this week suggested that income taxes were coming in way higher than expected, which might lead some to question whether Brown's proposed tax extensions are really needed. But whether it's $13 billion or $15 billion, it's still a whopping shortfall - not enough to handle through additional cuts in the budget, as some Republicans are suggesting. Brown will be announcing the state's revised budget projections this month.Here's the Controller's report.