California is anticipating a record $21.5B surplus from tech IPOs

Nearly 10% of the state’s tax revenue in the next fiscal year, or $13.8 billion, was already expected to come from capital gains. There are no official estimates for how much revenue is expected, but when Facebook went public in 2012, the state reaped a windfall of about $1.3 billion, according to California’s Department of Finance. “These are revenues that will come into the state on a one-time, or a limited-time, nature and the department of finance and certainly Governor Newsom are very much mindful of the fact that the financial markets can be extremely volatile,” said H.D. Palmer, a spokesman for Mr. Newsom’s department of finance.

Source: www.marketwatch.com