The Governor’s budget proposes only one significant budget-balancing solution in the resources and environmental protection areas—$350 million of loans from various special funds to the General Fund. We offer a number of recommendations for achieving General Fund savings beyond the Governor's proposal, including shifting funding for various programs from the General Fund to new or increased fees. Fees are an appropriate funding source in these cases, in our view, because the state is either providing a service directly to beneficiaries or administering a pollution control program that should be funded on a “polluter pays” basis. Our fee proposals relate to: (1) wildland fire protection, (2) fish and game regulation, (3) water quality regulation, and (4) scientific activities of the Office of Environmental Health Hazard Assessment that support regulatory programs. We also recommend program reductions and/or expenditure deferrals in CalFire and the CALFED Bay-Delta Program to create additional General Fund savings. In addition, we assess the administration’s approach in evaluating alternatives to the way water is currently conveyed through the Delta as a key component of solving Delta water problems. We find that the analysis being conducted by the administration is too narrow to fully inform the Legislature of the costs, benefits, risks, and trade-offs of the various conveyance alternatives.