The Governor's Budget proposes spending $52.5 billion from the General Fund and state special funds in 1994-95, as shown in Figure 1. This expenditure level is only slightly more than estimated current-year spending of $52.3 billion—an increase of $228 million, or 0.4 percent. General Fund spending shown in the budget declines by 1.4 percent, while spending from special funds increases by 6.1 percent. However, as we discuss in greater detail later in this part, this reflects a shift in how programs are financed rather than a change in program spending priorities or in underlying revenue trends. This shift in financing results from the Governor's state-county restructuring proposal.