Overview of General Fund Revenues and Expenditures
Resources and Environmental Protection

Expenditures are proposed to decrease by $695 million, or 30.8 percent. The major adjustments are as follows:

  • Expenditures for levee repairs and other flood control improvements funded by AB 142 will decrease by $325 million, as most of the funds will be encumbered by the end of the 2006-07 fiscal year.
  • Proposition 1E funds will be used to reimburse $200 million in previous General Fund expenditures for flood control. Since the reimbursement will take place in 2007-08, budget year expenditures will reflect a General Fund expenditure reduction of $200 million.
  • Expenditures for flood control subventions will decrease by $100 million. However, additional funding for the subventions is expected to be made available from the bond funds authorized by Proposition 1E.
  • Debt service for Resources land acquisitions and capital improvement projects approved in prior years will increase by $93 million.
  • Expenditures for deferred maintenance by the Department of Parks and Recreation will decrease by $90 million to reflect expiration of one-time funding. However, Proposition 84 provides $400 million for, among other purposes, restoration and rehabilitation of the state park system.
  • $50 million in one-time funds for various Fish and Game programs, the Marine Life Management Act and the Marine Life Protection Act, will be eliminated from the Budget.
  • One-time funding to correct shortfalls in subaccounts within the Fish and Game Preservation Fund will be eliminated, saving $20 million.
  • Funding requirements for the Habitat Conservation Fund will result in increased General Fund spending of $16 million.
  • Employee compensation costs for the Department of Forestry and Fire Protection will increase by $11 million.
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CHAPTER HIGHLIGHTS for Overview of General Fund Revenues and Expenditures Back to Top

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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.