The State - News from May 12, 1986

The new state budget will be closer to the constitutionally imposed spending limit than previously expected, but it will not exceed it, the California Department of Finance said. The department said spending for the fiscal year beginning July 1 will be only $20 million under the limit, rather than $100 million as had been estimated in January. The revision came in a report that also said that state revenues will be $113 million more than the governor had projected in January. State Finance Director Jesse R. Huff said he expects the state’s economy to continue to outperform the rest of the nation in terms of providing employment, income and construction activity.