On Thursday, state Controller John Chiang (D) reported that California exceeded revenue projections for November by 8.9%, or $497.7 million. Through the first five months of the fiscal year, the state now is $1 billion short of revenue predictions, down from the $1.5 billion revenue shortfall Chiang reported in November. However, Chiang also noted that California spent $1.95 billion more than projected through November. Chiang said, "Regardless of whether midyear cuts are enacted next week, the Legislature faces a tremendous fiscal challenge when it returns to session next month." Sacramento Bee's "Capitol Alert."