California Resident Income Tax Forms and Instructions : THE STATE BUDGET

Gov. Pete Wilson Thursday proposed spending $55.7 billion for the 12 months beginning July 1. The spending plan now goes to the Legislature, which has until June 15 to enact a budget. The governor’s proposal would increase state spending by 1.4% and leave the state with a $1.4-billion emergency reserve.

The budget proposes $1.8 billion in additional taxes. Among the largest spending increases proposed by Wilson is a 14.4% boost in the prisons budget. At the same time, welfare grants would be cut by about 9%. Although spending for schools would climb 5%, financial support on a per-student basis would drop.

1. Education (K-12 and community colleges): $16.31 billion

2. Health and Welfare: $14.72 billion

3. Higher Education: $6.40 billion

4. Local Government: $4.23 billion

5. Business, Transportation and Housing: $4.24 billion

6. Youth and Adult Correctional Agency: $3.97 billion

7. Other: $2.38 billion

8. Resources: $2.11 billion

9. Tax Relief: $716 million

10. State and Consumer Services: $624 million

PROPOSED SPENDING

1. 29.3%

2. 26.4%

3. 11.5%

4. 7.6%

5. 7.6%

6. 7.1%

7. 4.3%

8. 3.8%

9. 1.3%

10. 1.1%

EXPECTED SOURCES OF REVENUE

Sales Tax: 29.7%

Bank and Corporation Taxes: 9.7%

Other: 7.3%

Highway Users Taxes: 7.1%

Motor Vehicle License Fees: 5.5%

Insurance Tax: 2.3%

Tobacco Taxes: 1.4%

Estate Taxes: 0.9%

Liquor Taxes: 0.6%

Horse Racing fees: 0.3%

Personal Income Tax: 35.1%

The total sending figure --$55.7 billion--does not include a $1.4--billion reserve for emergencies