Description: The Governor's budget proposes a number of changes to the CalWORKs program, including stricter work requirements and greater sanctions. These program reforms would result in $167 million in grant savings, partially offset by $134 million in child care costs and $2.5 million in automation costs in 2004-05. We discuss welfare reform in California, summarize the Governor's reform proposals, present a framework for considering the proposals, and offer comments and recommendations.