The Governor released his proposed state budget on January 10th. The budget assumes $2.3 billion less in resources than the $10.3 billion in uncommitted funds we reported in November, primarily reflecting the recent slowing in the national economy. The budget proposal allocates the remaining $8 billion in uncommitted resources to finance increased spending ($5.5 billion, including major new initiatives in the areas of education and energy), cut taxes ($0.1 billion), and provide for a budgetary reserve ($2.4 billion).