Facebook's public stock offering this week is projected to generate between $1.6 billion and $2.1 billion through mid-2013 for California's budget as shareholders cash in their shares.

The nonpartisan Legislative Analyst's Office on Tuesday increased the state's revenue projection after the online social network raised the upper range of its initial stock price from $35 per share to $38.

The higher state revenue projection assumes voter approval of Gov. Jerry Brown's tax-hike initiative in November.

The analyst's report says Facebook is expected to drive one-fifth of the growth in California's personal income this year.

CEO Mark Zuckerberg will make a significant contribution to the state's finances. Department of Finance spokesman H.D. Palmer says California could receive $195 million when he exercises his option on 60 million shares.