The Governor's fiscally responsible budget includes a necessary and healthy $2.2 billion reserve that will cushion the state against unforeseen disasters, court orders, and other events. It also aggressively tackles the state budget deficit, taking it down to just $1.4 billion for the coming fiscal year.

In order to adhere to fiscal responsibility – especially in a year of slumping residential home prices that indicate a slight economic slowdown – the Governor made some difficult decisions, which are outlined here.

The Governor was able to protect California's priorities and maintain some of the highest funding in the nation for people with disabilities, low-income seniors, foster children, and needy families in need of temporary assistance.

Here, you can read more details about some of the decisions made by the Governor and about some of the changes between his January proposed budget and the May Revision.