Californians paid an “unexpected” $1.4 billion in income taxes for 2007, Controller John Chiang reported. This means the state’s budget deficit will be reduced by about $738 million, his statement concluded. Since at last count the State was $20 billion in the hole, those on Capitol Hill are likely not sighing in relief just yet. Chiang also referenced the fact that these numbers reflected the 2007 economic picture, intimating that 2008 is not expected to be as rosy.
