Four independent management and fiscal reviews have come to similar conclusions: (1) the current CALFED governance structure is not working well, (2) state priorities for CALFED are not clear, and (3) meaningful performance measures for the program are lacking. However, the Governor’s CALFED budget proposal is “business as usual.” To accomplish a needed overhaul, we recommend the enactment of legislation addressing the governance problems, setting expenditure priorities, establishing performance measures that tie to the budget process, and defining the beneficiary pays funding principle.