State Revenues Up; Budget Gridlock Persists

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(Sacramento, CA)
Thursday, June 23, 2005

The Department of Finance reports that tax revenues were 390 million dollars higher last month than had been forecast.  The news comes with the start of the new fiscal year just eight days away. Budget talks are continuing and the state Senate’s top Democrat, Don Perata says he’s optimistic.  "The staff who really understands most about the budget and understands what our key points of concern are, have been meeting six hours yesterday and maybe they’ll go in today and work over the weekend.  And I think it’s fair to say we’re making incremental progress.  I would not go so far as to say we almost have a deal." 
  Department of Finance spokesman H.D. Palmer says the governor is also hopeful.  "With hard work and with good will it’s likely we can get there. 
  Palmer did warn the legislature that the additional revenue announced by the Department of Finance is an unexpected one time jump and should not be used for ongoing year to year programs.