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http://www.lao.ca.gov/2006/budget_ov/2006-07_budget_ov.htm

January 12, 2006

2006-07 Overview of the Governor’s Budget

The 2006-07 Governor’s Budget now projects that the state will be able to fund much more than a current-law budget and still maintain fiscal balance in 2006-07. The plan, however, moves the state in the wrong direction in terms of reaching its longer-term goal of getting its fiscal house in order. Given the state’s current structural budget shortfall, we believe that the 2006-07 budget should focus more on paying down existing debt before making expansive new commitments.

In our November forecast, we indicated that a much-improved revenue picture would enable California to fund current-law budget requirements in 2006-07, but that the state still faced a longer-term structural gap between revenues and expenditures.

As a result of further improvements in the revenue outlook, the 2006-07 Governor’s Budget now projects that the state will be able to fund much more than a current-law budget and still maintain fiscal balance in the budget year. Specifically, the proposal includes over $4 billion in higher spending, including over $2 billion for new or expanded programs and $920 million for the prepayment of a loan due to transportation in 2007-08. The budget package also contains a major long-term infrastructure proposal covering transportation, flood protection and water supply, education, and corrections.

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Acknowledgments
This report was prepared by Brad Williams, with assistance from many others in the office. The Legislative Analyst's Office (LAO) is a nonpartisan office which provides fiscal and policy information and advice to the Legislature.

Arnold is using this budget to basically buy off voters for the upcoming election. And to think one of Arnold's idols is Milton Friedman.

Unfortunately, Arnold is about the best we are going to get in California on a statewide basis. At least he vetoed the gay marriage bill and has resisted giving drivers licenses to illegal aliens (and praised the Minutemen).

Here's where lots of your education $$$ go:

"Coinciding with special education law is a large number of unfunded mandates that are not reimbursed by the state or federal government. For example, the financial encroachment on the District’s general fund has reached approximately $1,000,000 per year. Some examples are as follows:

When a special education student requires transportation, the District must provide it. We are currently transporting 36 students at an average cost of $900 per student per month.
If a student must be placed in a County program, the cost is approximately $22,000 per student per year.
If a student must be placed in a non-public school placement, the average cost is $32,000 per year.
When students receive one-to-one aides, the cost for a 15 hour aide is approximately $15,000 per year."