The red ink is again flowing out of the beleaguered state budget.
Controller John Chiang reports that only four months into the new fiscal year, state revenues are off by $1.5 billion dollars.
That raises fears of deeper cuts for schools and social programs as soon as January.
The cash report came just as the state Supreme Court was hearing arguments Thursday on another part of the budget puzzle: money taken from local redevelopment agencies. The legal fight centers on who controls the distribution of local property tax dollars: the Legislature or voters?