	The Deukmejian administration entered office during a national economic recession. He first halted the hiring of new state employees and banned out of state travel for those in government. He rejected the legislature's demands for tax hikes, and pared $1.1 billion from its budget by selectively vetoing spending items. One year later, further cuts, along with a nationwide economic rebound that benefited the state, created a billion dollar surplus for 1985. His 1985 budget slightly increased spending in highway construction, but cut heavily into the education, health, welfare and environmental budgets. For this he was roundly criticized, and the cuts probably led to his low polling numbers at the end of his tenure as governor.