Facebook’s Stock Plunge Blows A New Hole In California’s Budget

Facebook’s plummeting stock price may cost California “hundreds of millions of dollars” in lost revenue, according to a state fiscal analyst. In its budget, the state had been counting on $1.9 billion in revenue from Facebook employees who became rich in the wake of their company going public. “Facebook share prices have fallen far below levels assumed in the state’s revenue projections,” said California’s Legislative Analysts’s Office in a report, adding that if “the lower share prices persist through November and December, hundreds of millions of dollars of income tax revenue assumed in the state budget plan are at risk.”