Replies

Figure 1	.
General Fund Budget Solutions in the Legislature’s 2010–11 Budget Plan	.
(In Billions)	.
.	Reduced Costs or Increased Revenues
Expenditure–Related Solutions
Reduce Proposition 98 costs	$3.10
Reflect savings in state employee payroll, benefit, and related costs	1.6
Reduce budget for prison medical care	0.8
Achieve IHSS savings through various actions	0.3
Defer or suspend local government mandates	0.2
Reflect reductions in adult prison population	0.2
Offset UC and CSU General Fund costs with federal economic stimulus funding	0.2
Require managed care enrollment for certain Medi–Cal recipients	0.2
Adjust other spending (net reduction)	0.1
Subtotal	($6.80)

Federal Funding and Flexibility Solutions
Assume enhanced federal funding and/or additional cost flexibility	$4.10
Score savings from recent congressional action to extend FMAP support	1.3
Subtotal	($5.40)

Revenue–Related Solutions
Adopt LAO’s May 2010 revenue forecast	$1.40
Suspend for two years the ability of businesses to deduct net operating losses	1.2
Score additional revenues from previously auth'd sale leaseback of state office bldgs	0.9
Adopt other compliance actions and reductions in business taxes (net reduction)	-0.1
Subtotal	($3.30)

Loans, Loan Extensions, Transfers, and Funding Shifts
Borrow from special funds	$1.30
Extend due dates for repayment of existing loans from the General Fund to special funds	0.5
Fund courts from previously authorized shift from redevelopment agencies	0.4
Use hospital fees to support Medi–Cal children’s coverage	0.2
Transfer special fund monies to the General Fund	0.1
Use Student Loan Operating Fund monies for Cal Grant costs	0.1
Adopt other funding shifts	0.1
Subtotal	($2.70)

Total, All Budget Solutions	$18.30

IHSS = In–Home Supportive Services; FMAP = Federal Medical Assistance Percentage;	.
LAO = Legislative Analyst’s Office.