The Governor has put forward an aggressive agenda for the special session and the 2008–09 budget. The Legislature should focus first on those areas where time is of the essence—where early decisions will allow state programs to achieve desired savings in the current year. The special session should also be used to lay the groundwork for achieving budget–year savings—for instance, by developing any program restructurings and taking any necessary actions on the current–year Proposition 98 minimum guarantee. In contrast to the Governor’s approach of across–the–board reductions, in our view the Legislature should (1) eliminate or further reduce low–priority programs in order to minimize the impact on higher priority programs and (2) examine additional revenue options as part of a more balanced approach. Making tough choices now will allow the state to move closer to bringing its long–term spending and revenues into alignment.