LAO - Overview of the Governor's Budget

The 2007-08 Governor’s Budget proposes
a major redirection of transportation funds,
reductions in social services, and a variety
of other actions to eliminate a significant
shortfall in 2007-08. The plan assumes that adoption of its proposals will result in a balanced budget with an over-$2 billion reserve.

However, the budget contains a significant
number of downside risks and is based on
a number of optimistic assumptions. Its key
proposals also raise serious policy and legal issues. Adverse outcomes in just a few of these areas could easily eliminate most or all of the proposed reserve. Downloadable pdf.