It seems that California counted its chickens, or maybe more appropriately its millionaires, before they hatched. From www.businessinsider.com:
According to Bloomberg's John Erlichman, California is now saying its "tax revenue is at risk" because it assumed it would get $1.9 billion from newly enriched Facebook employees.
But now those Facebook employees are only going to get about half as rich as they would have if the stock were still trading at the IPO price.
And that means that California--and the Federal government--are likely to collect only about half as much Facebook-related tax revenue as they thought.
Maybe officials in California should make more of an effort to keep up with BlawgConomics?