Introduction
Budget Reform

While this budget proposes ongoing spending that is aligned with ongoing revenues, the structural deficit can re-emerge as early as the next budget year. To prevent this, the state needs to find ways to (1) keep spending in check in the long run and (2) reduce the volatility of state revenues. Toward these ends the Governor will work with the Legislature to develop and enact real budget reform.
image of backward arrow image of forward arrow
CHAPTER HIGHLIGHTS for Introduction Back to Top

 Paying Down the Debt
 Protecting Priorities
 Reducing the Operating Deficit
image of black pointing arrowBudget Reform
 The California Strategic Growth Plan

BUDGET OVERVIEW Back to Top
Overview of General Fund Revenues and Expenditures
The Governor's Budget projects General Fund revenues will increase by 7.2 percent in 2007-08 compared to the revised 2006-07 revenue estimate, and General Fund expenditures to increase by only 1.0 percent compared to the revised 2006-07 expenditure estimate.

 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 - Introduction (pdf * - 9K) -
Provides this entire Introduction Chapter in pdf format.