Overview of General Fund Revenues and Expenditures
Business, Transportation, and Housing

Expenditures are proposed to decrease by $1.4 billion, or 47.5 percent. The major adjustments are as follows:

  • A reduction of $340 million for debt service for seismic work on bridges due to the proposal to offset such expenditures with sales tax "spillover" revenues.
  • Repayment of Proposition 42 loans of $83 million per Proposition 1A, and a $1.2 billion prepayment of the Proposition 42 loan in 2006-07.
  • Proposition 42 transfer is fully funded in 2007-08 at $1.5 billion. This is an increase of $47 million over the current year amount of $1.4 billion.
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CHAPTER HIGHLIGHTS for Overview of General Fund Revenues and Expenditures Back to Top

 Executive
 Legislature
 Judicial
 State and Consumer Services
image of black pointing arrowBusiness, Transportation, and Housing
 Resources and Environmental Protection
 Health and Human Services
 Corrections and Rehabilitation
 Non-Proposition 98 Education
 Labor and Workforce Development
 General Government
 Proposition 98

BUDGET OVERVIEW Back to Top
Introduction
When Governor Schwarzenegger took office in November of 2003, the state faced a structural budget crisis of unprecedented proportions. A review of state finances projected that California was on a path to spend $16.5 billion more than the General Fund revenue it would take in this year. In contrast, the Governor's Budget for 2007-08 proposes to limit General Fund spending to the amount of revenue the state will collect, with the exception that it proposes to use $840 million of funds available from previous years to pre-pay debt. By eliminating the state's net operating deficit, by setting aside a total reserve of $2.1 billion and by eschewing tax increases and new budgetary borrowing, this budget puts California on the path to full fiscal recovery.

 Budget Summary Improvements
As part of the Administration's effort to improve the understanding and comparability of budget expenditure data, the 2007-08 Governor's Budget Summary will now follow a more traditional agency format. In the past, some content in the Governor's Budget Summary was arranged by major program areas rather than by agency. Budget expenditure data will be displayed in both a summary format and a new agency change table format. The change tables are intended to provide the reader a snapshot of proposed expenditure and position adjustments in each agency, why those changes are being proposed, and their dollar and position impact.
PRINTABLE BUDGET DOCUMENTS Back to Top
Budget Summary - Overview of General Fund Revenues and Expenditures (pdf * - 30K) -
Provides this entire Overview of General Fund Revenues and Expenditures Chapter in pdf format.