The dot-com boom that had been fueling California's record tax revenues went bust. California was home to a large number of high tech firms and was largely dependent on state income taxes. State revenues fell while ongoing spending commitments created deficits. Restoring the vehicle licensing fees to pre tax cut levels to close the budget gap and stabilize the state's credit rating became unpopular. The beginning shortfall for the 2002-2003 state budget was $23.6 billion. Davis announced that the 2003-2004 budget shortfall would be $34.6 billion while the Legislative Analyst projected a $21.1.