SACRAMENTO - Even as administration officials continued work to finish Gov. Arnold Schwarzenegger's revised budget due out next week, Assembly Speaker Fabian Nunez warned the Republican governor Thursday not to cut too deep.

"Make no mistake, we are going to fight very hard for the things that we believe in," said Nunez, D-Los Angeles, at a noontime press conference. "We will tell the governor of those things that we really want in this budget, what we think is important and socially responsible. And the governor can tell us how he plans to see that the revenues are there to fund those programs."

The warning came on the same day that state Controller Steve Westly announced tax income during April came in $2.1 billion more than the governor's estimates much of that driven by a tax amnesty program.

While news of the extra income was welcomed at the Capitol, it remains only a small fraction of what is needed to close a 2004-2005 shortfall estimated in January at $17 billion. The higher income offsets the loss of a like amount in state money from several court cases, including a ruling that struck down a business tax and one that invalidated a plan to borrow money to pay a pension obligation.

Schwarzenegger is expected to unveil next week a revised budget plan that includes billions of dollars in borrowing and one-time savings but also billions more in service cuts but no new taxes. His January budget plan proposed to close most of the gap with $5.3 billion in one-time savings and another $9 billion in savings from spending cuts and program shifts.

Democrats have said they want to consider tax increases as part of the solution.

"It's not an issue of taxes, it's an issue of what we want in terms of quality public services and how we pay for what we want," said Assemblyman Darrell Steinberg, D-Sacramento. "When we look at the potential cuts to higher education, to health and human services, there's a line to be drawn in terms of what we won't go below."

Westly said it's critical that both the Legislature and the governor keep an eye on the end of the state's fiscal year, June 30, as a critical deadline for the budget.

"Wall Street is looking for signs that California government is becoming more functional," he said, noting that investment rating firms have already upgraded their outlook for the state since the passage of Propositions 57 and 58 which authorized a $15 billion bond sale and a prohibition on future borrowing. "The next piece is to get a budget on time and balanced."

Westly also noted that personal income also grew during April, $1.2 billion more than expected, while corporate taxes were $485 million higher.