Description: The state faces a remaining budget shortfall of $15 billion, after accounting for the $7 billion in solutions adopted as part of the special session. We have updated our LAO alternative budget, which remains balanced through our forecast period, to reflect the state’s worsening fiscal situation. Our plan includes a more responsible lottery securitization—resulting in a General Fund benefit of $5.6 billion over two years—with a dramatically reduced risk to education’s lottery funding. Finally, we offer some much simpler approaches to increasing the size of the state’s reserve in good fiscal times.