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Facebook’s IPO now hurting California’s budget

Published on NewsOK Published: January 17, 2013
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Sean Higgins

Here’s an interesting story from today’s Wall Street Journal about how bad the budget situation is in California: the disappointing Facebook IPO has forced them to downgrade their budget forecasts:

According to the budget document, the state projected three sources of tax revenue tied to the share offering: stock sales by early investors, vesting of restricted stock after the offering, and the exercise of some stock options, beginning at the time of the IPO.

But Facebook’s lower share price means those transactions are generating less income that can be taxed.

Click to read full article at Washington Examiner