Mar. 24, 2011 (CNBC) -- California’s tax collections grew at around half of what the state projected for 2010—indicating that the state’s fiscal situation may be even more dire than previously understood.
California’s tax collections grew 3.79 percent last year, according to data released by the US Census Bureau. At the start of 2010, California was projecting revenue growth of 6.5 percent.
California began raising taxes in 2009, in response to a huge drop in tax revenues caused by the recession. In 2009, California tax collections were 13.9 percent lower than they were the year before -- putting severe strain on the state’s budget.
But two years of tax hikes have produced far less impressive results than state officials expected.
READ MORE: CNBC
