Overview of the Governor’s Budget

Appendix 1: General Fund Spending Solutions

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General Fund Spending Solutions for 2025‑26 in the 2024‑25 Spending Plan, Updated for Governor’s Budget: Delays
General Fund Spending Solutions for 2025‑26 in the 2024‑25 Spending Plan, Updated for Governor’s Budget: Fund Shifts
Other General Fund Solutions for 2025‑26 in the 2024‑25 Spending Plan, Updated for Governor’s Budget
General Fund Spending Solutions for 2025‑26 in the 2024‑25 Spending Plan, Updated for Governor’s Budget: Reductions

Appendix 1, Figure 1

General Fund Spending Solutions for 2025‑26 in the 2024‑25 Spending Plan,
Updated for Governor’s Budget: Delays

(In Millions)

Department or Program	Description	Amount
CalFresh	California Food Assistance Program expansion	$115
CPUC	Last‑Mile Broadband Project Grants	200
CSU	Base augmentation	252
GO‑Biz	City of Fresno Public Infrastructure Development	100
UC	Base augmentation and nonresident replacement funds	272
Total		$939
CPUC = California Public Utilities Commission and GO‑Biz = Governor’s Office of Business and Economic Development.

Appendix 1, Figure 2

General Fund Spending Solutions for 2025‑26 in the 2024‑25 Spending Plan,
Updated for Governor’s Budget: Fund Shifts

(In Millions)

Department/Program	Description	Amount
CalSTA	Formula Transit and Intercity Rail Capital Program (Transportation)	$188
CalSTA	Competitive Transit and Intercity Capital Rail Program (Transportation)	180
Caltrans	Grade separation projects (Transportation)	75
CEC	Clean Energy Reliability Investment Plan	500
CEC	Equitable Building Decarbonization Program (Energy)	93
CEC	Distributed Electricity Backup Assets (Energy)	25
CVCB	Restitution Fund backfill	10
DGS	California Commission on Disability Access permanent fund shift	2
DGS	Asset Management Branch temporary fund shift	1
DHCS	Managed Care Organization Tax (2024‑25 early action)	466
DHCS	Behavioral Health Bridge Housing	90
DOJ	Swap of fund source for state share of Medi‑Cal fraud enforcement costs	2
DWR	Oroville pump storage (Energy)	130
GOSERVE	California Climate Action Corps	9
WCB	Watershed climate resilience (Water and Drought)	15
Total		$1,786
Note: If the original augmentation was part of a package, that is indicated in parentheses.
CalSTA = California State Transportation Agency; Caltrans = California Department of Transportation; CEC = California Energy Commission; CVCB = California Victim Compensation Board; DGS = Department of General Services; DHCS = Department of Health Care Services; DOJ = Department of Justice; GOSERVE = Governor’s Office of Service and Community Engagement; and WCB = Wildlife Conservation Board.

Appendix 1, Figure 3

Other General Fund Solutions for 2025‑26 in the 2024‑25 Spending Plan,
Updated for Governor’s Budget

(In Millions)

Solution Type	Description	Amount
Cost Shift	Extend repayment schedule for current loans	$799
Reserve Withdrawal	BSA mandatory balance	4,889
Reserve Withdrawal	BSA discretionary / overage balance	2,211
Revenue Related	Net operating loss suspension and limitations on credits	5,592
Revenue Related	Managed care organization tax increase	1,915
Revenue Related	Transfer of a portion of individual mandate penalty revenues	109
Revenue Related	Fee for certain public hospital intergovernmental transfers	74
Revenue Related	Charitable Conservation Easements Conformity	34
Revenue Related	Eliminate bad debt deduction for lenders and retailers	10
Revenue Related	Eliminate percentage depletion tax expenditure for fossil fuels	9
Revenue Related	Eliminate intangible drilling cost expensing tax expenditure	8
Total		$15,651

Appendix 1, Figure 4

General Fund Spending Solutions for 2025‑26 in the 2024‑25 Spending Plan,
Updated for Governor’s Budget: Reductions

(In Millions)

Department or Program	Description	Amount
Arts Council	Grants to arts organizations	$5
DHCS	Behavioral Health Continuum Infrastructure Program	381
DHCS	Behavioral Health Bridge Housing	118
DHCS	Naloxone Distribution Project and medication assisted treatment	61
BSCC	California Violence Intervention and Prevention Grant Program	9
BSCC	Proud Parenting Grant	1
CCC	Student housing projects	60
CDCR	Housing unit deactivations	82
CDCR	Pharmaceutical Budget Rebate Program	31
CDCR	Officer training reduction	23
CDCR	Administrative reductions for prison closures	11
CDCR	Headquarters lease reduction	9
CDCR	Employee Health Program	7
CDCR	Reduced maintenance of deactivated prisons	5
CDCR	Los Angeles County fire camp contract cancellation	5
CDCR	Resources for The Joint Commission Accreditation	2
CDCR	Reduction of TransMetro Bus contract	2
CDCR	Statewide correctional video surveillance technical update	1
DPH	Local Future of Public Health funding	16
DPH	21st Century Public Health System Program	10
DPH	State Future of Public Health funding	8
DPH	Public Health IT Systems	7
DPH	Office of Oral Health General Fund backfill	5
CSU	Base reduction	375
CSAC	Middle Class Scholarships	110
CalWORKs	Employment services intensive case management	47
CalWORKs	Mental health and substance abuse services	26
CalWORKs	Home visiting	25
Child Support	Local child support agency funding	6
Child Welfare	Housing supplement for foster youth in SILPs	19
Child Welfare	LA County public health nurse program	8
Aging	Media Campaign	10
DDS	Porterville Developmental Center vacancies	10
DDS	Emergency preparedness resources	1
DGS	Electric vehicle service equipment reduction	12
HCD	Foreclosure Intervention Housing Preservation Program	100
DOJ	Division of Legal Services	5
DOJ	Legal resources to respond to federal actions	1
DMV	California commercial drive test centers	11
DSS	Housing and Disability Advocacy Program	50
DTSC	Brownfield cleanups	85
Caltrans	Active Transportation Program	56
Caltrans	Grade separation projects (Transportation)	175
CEC	Climate Innovation Program	225
CEC	Equitable Building Decarbonization Program (Energy)	72
LUCI	California Education Learning Lab	6
GOSERVE	Office of Community Partnerships and Strategic Communications	42
GOSERVE	College Corps	10
GOSERVE	Youth Corps	10
GOSERVE	Neighbor‑to‑Neighbor Program	10
HCAI	Health care workforce initiatives	74
Judicial Branch	Trial court operations	97
Medi‑Cal	Equity and Practice Transformation Payments to providers	68
Medi‑Cal	County administration COLA freeze	42
Medi‑Cal	Health program increases in managed care organization tax package	‑27
OES	Listos California Emergency Preparedness Campaign	13
OES	Warehousing operations for emergency response equipment and supplies	9
OIG	Medical Inspection Unit	4
CPUC	Residential Solar and Storage Program (Energy)	225
CPUC	Broadband Loan Loss Reserve Fund	175
CPUC	Broadband Loan Loss Reserve Program (2024‑25 early action)	100
SIB	Financial literacy outreach	5
DHCS	Major Risk Medical Insurance Program	3
CSL	Local library infrastructure grants	33
CSL	Lunch at the Library	2
CSL	California Library Services Act	2
Statewide	State operations ongoing reductions	452
Statewide	Vacant positions	228
CalSTA	Grade separation projects (Transportation)	25
UC	Base reduction	397
UC	Graduate medical education	14
DWR	Water storage (Water and Drought)	500
DWR	Watershed climate resilience (Water and Drought)	10
Total		$4,813
Note: If the original augmentation was part of a package, that is indicated in parentheses.
DHCS = Department of Health Care Services; BSCC = Board of State and Community Corrections; CDCR = California Department of Corrections and Rehabilitation; DPH = California Department of Public Health; Aging = Department of Aging; DDS = Department of Developmental Services; DGS = Department of General Services; HCD = Department of Housing and Community Development; DOJ = Department of Justice; DMV = Department of Motor Vehicles; DSS = Department of Social Services; DTSC = Department of Toxic Substances Control; Caltrans = California Department of Transportation; CEC = California Energy Commission; LUCI = Governor’s Office of Land Use and Climate Innovation; GOSERVE = Governor’s Office of Service and Community Engagement; HCAI = Department of Health Care Access and Information; OES = Governor’s Office of Emergency Services; OIG = Office of the Inspector General; CPUC = California Public Utilities Commission; SIB = Scholarshare Investment Board; CSL = California State Library; CalSTA = California State Transportation Agency; and DWR = Department of Water Resources.