The Governor's proposal contains significant program savings—particularly in K-12 education, social services, and transportation—and borrowing to address the state's 2005-06 budget shortfall. While the 2005-06 proposal has several positive attributes, it falls well short of fully addressing the state's ongoing projected fiscal imbalances. Moreover, its budget reform proposals would put more future state spending on "cruise control" and hamper the ability of future policy makers to establish budget priorities.