Gov. Pete Wilson on Friday released revised budget estimates that featured minor alterations from the fiscal 1995 budget he proposed in January.
The May revisions, which set the tone for final budget negotiations for the new fiscal year beginning on July 1, said that anticipated revenues "are essentially unchanged from January." Current-year budget revenues are $161 million less than expected, "due in large part to casualty loss deductions associated with the Northridge earthquake."
Regarding the state's economy, "there is growing evidence that California is showing signs of an economic turnaround, and the May revision forecast is revised up from the January budget forecast," the updated budget summary said.
As a result, average 1994 nonfarm employment "is now forecast to maintain 1993 levels, compared to a projected 0.6% decline in the January budget [forecast]." In addition, "1995 employment is expected to be up 1.6%, compared to 0.7% [projected] in the January budget."
At this point, however, "the employment upturn is still tenuous," the budget revision said.
Wilson's proposed general fund budget for fiscal 1995 is about $40 billion. Some Democrats have called the Republican governor's proposal unrealistic, partly because he is counting on about $3 billion of federal funding for immigrant-related services. But some Republicans said the Democrats are using the budget debate to play election year politics.
