Description: In July 1994, a two-year plan was adopted for eliminating the budget deficit carried over from 1993-94 and bringing the state's budget back into balance by year-end 1995-96. On January 10, 1995, the Governor is scheduled to release his specific budget proposal for 1995-96. This update reviews the state's progress in implementing the budget plan based on recent developments. Currently, the state is running slightly ahead of scheduie in its two-year plan to eliminate the budget deficit. However, there are a number of budget risks and uncertainties that could worsen the outlook considerably and jeopardize achieving a balanced budget in 1995-96.