SACRAMENTO, Calif. — The coronavirus could impact California's budget.
California gets nearly half of its income tax revenue from the top 1% of earners. Most of that money comes from capital gains, which in California are taxed the same as income.
But the market's 20% dive from recent highs could mean trouble for California - the world's fifth largest economy - if the losses persist.
Democratic state Assemblyman Phil Ting said officials might have to lower their revenue estimates, which would mean the state would have less money to spend.
State Sen. Holly Mitchell said she is not concerned, noting California is projected to have more than $20 billion in reserves this year.
For more details, click HERE.
FOR NEWS IN YOUR COMMUNITY, DOWNLOAD THE ABC10 APP:
►Stay In the Know! Sign up now for ABC10's Daily Blend Newsletter
- Local coronavirus updates | First 2 cases of coronavirus confirmed in Stanislaus County
- Coronavirus live updates: WHO classifies coronavirus as a pandemic, Trump to address nation