California Tax Forecast Falls $58 Billion Short, Signaling Cuts

California’s tax revenue fell short of forecasts as expectations of a tax windfall late in the year failed to materialize, the nonpartisan budget advisor office said.

The forecast on Friday by the Legislative Analyst’s Office said California’s tax revenue is expected to be $58 billion lower than earlier projections for the current and upcoming fiscal year. The state had expected a surge of tax payments in October and November due to delays in the tax filing deadline caused by natural disasters.

“With the recent receipt of various postponed tax payments, the impact of recent economic weakness and last year’s ...