(POLITICO) — California's budget could take a hit if Facebook's stock price keeps sliding.
Gov. Jerry Brown previously estimated the state would generate between $1.4 billion and $1.9 billion over the next 13 months from taxes related to sales of Facebook stock. The estimate was based on a price of $35 a share.
Facebook went public Friday at $38 a share but closed at $31 on Tuesday.
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Last week, the nonpartisan Legislative Analyst's Office warned that a number of uncertainties could cause the state's deficit to be several billion dollars higher or lower than the governor's $15.7 billion estimate.
"The potential hit from Facebook's share price is nothing compared to the potential damage from a broader stock slump," Deputy Legislative Analyst Jason Sisney said.
The budget analyst pegged tax revenue from Facebook stock sales between $1.6 billion and $2.1 billion through mid-2013. The higher estimate is dependent on whether voters pass Brown's tax initiative in November.