State revenues are picking up

California's $25-billion budget deficit is not going away, but at least the state coffers are looking a bit better. Controller John Chiang reports that tax revenues are $1.3-billion ahead of projections through the first eight months of the fiscal year (even though receipts in February were actually lower than forecast). Much of the eight-month gain comes from income taxes, which suggests that lots of folks are doing well in the stock market. Payroll withholdings are also up. Considering the state's still-high jobless rate, it's another sign of a bifurcated recovery.