Overview of General Fund Revenues and Expenditures
General Government

Expenditures are proposed to increase by $851.3 million, or 33.1 percent. The major adjustments are as follows:

  • An increase of $551 million for transfer to the Budget Stabilization Account for early retirement of the Economic Recovery Bonds per Proposition 58.
  • A one-time increase of $595 million to pre-pay outstanding Economic Recovery Bond debt.
  • A decrease of $77 million reflecting higher recovery of central services costs from special funds.
  • An increase of $35.7 million to support the "Next Generation" of financial management information systems and workforce for the state. The modernization project, known as the Financial Information System for California (FI$Cal), will prepare the state financial management systems and workforce to function in a single statewide financial management system environment.
  • An increase of $10.3 million to procure and implement the statewide Veterans Home Information System.
  • An increase of $2.1 million to open a 40-bed skilled nursing facility at the Barstow Veterans Home.
  • An increase of $1.7 million for the Military Department to establish a tuition assistance program for members of the California National Guard.
  • An increase of $0.6 million for workload increases for the Fair Political Practices Commission.
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CHAPTER HIGHLIGHTS for Overview of General Fund Revenues and Expenditures Back to Top

 Executive
 Legislature
 Judicial
 State and Consumer Services
 Business, Transportation, and Housing
 Resources and Environmental Protection
 Health and Human Services
 Corrections and Rehabilitation
 Non-Proposition 98 Education
 Labor and Workforce Development
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 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.