ftp://ftpgovbud.dof.ca.gov/pub/BudgetSummary/FullBudgetSummary.pdf
While the Strategic Growth Plan will increase the budgetary costs of debt service from the current level of just under 5 percent of General Fund revenues to nearly 6 percent, it does so in a fiscally prudent manner. Given the long time frames inherent in major capital programs, this increase will not occur for several years. Long before that time arrives, the state will have eliminated its remaining structural deficit and be well able to assume this additional debt. The track record of the last two years indicates that we are well on our way to doing so, probably in 2007-08.
As described in the Introduction section, the state faces a continuing structural budget deficit. While the Governor’s Budget continues to make progress in reducing this deficit, more work remains to be done. This plan assumes that the state will eliminate the remainder of the structural deficit within the next one to two years.