Facebook Stock Could Hurt California Budget

California's budget could take a hit if Facebook's stock price keeps sliding.

Gov. Jerry Brown previously estimated the state would generate between $1.4 billion and $1.9 billion over the next 13 months from taxes related to sales of Facebook stock. The estimate was based on a price of $35 a share.

Facebook went public Friday at $38 a share but closed at $31 on Tuesday.

Last week, the nonpartisan Legislative Analyst's Office warned that a number of uncertainties could cause the state's deficit to be several billion dollars higher or lower than the governor's $15.7 billion estimate.

 

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