PHOENIX (AP) _ The worsening economy is doing further damage to the state’s finances, forcing Gov. Janet Napolitano to raise her estimates for current and future revenue shortfalls and expand her previous proposals to keep the budget in the black.

Napolitano’s top budget adviser said Thursday that the revised plans call for making a bigger withdrawal from the rainy day reserve and doublings of previously proposed spending reductions by agencies, of sweeps of money from special-purpose funds and of a short-term delay of state funding for K-12 schools.

Napolitano’s new proposals, like their predecessors, still call for new borrowing for school construction to free up dollars to protect spending for education and programs for children and vulnerable adults.

Further details on Napolitano’s still-developing proposals will be released next week as her staff scrambles to react to poor January fiscal indicators that bode poorly for the middle of calendar year, said George Cunningham, a deputy chief of staff.

However, Cunningham said Napolitano does not feel a state hiring freeze is necessary and is not proposing lump-sum reductions on state agencies. Republican lawmakers have advocated both of those steps while resisting Napolitano’s proposed borrowing.

Republican legislative leaders were in closed-door budget talks and unavailable for comment on the Democratic governor’s revised proposals late Thursday. But House Republican spokesman Barrett Marson called Napolitano’s new and higher shortfall estimates a bow to a reality already recognized by lawmakers.

Napolitano’s new revenue shortfall estimate for the current fiscal year’s $10.6 billion is well over $1.1 billion, up from the $870 million estimated as recently as January and $600 million back in September. The current fiscal year, now more than half over, ends June 30.

Her new estimate for the next fiscal year is $1.7 billion, up from just under $1.3 billion previously.

Cunningham said the new budget projections and proposals result from dramatically poorer economic indicators during January, both at the state and national levels.

``I think it’s below the pessimistic,’’ Cunningham said when asked how the current appraisal lines up with various economic models considered when Napolitano took the measure of her January budget proposals.

``I think we’re going to start leveling off. I don’t think February is going to be as much below forecast.’’