(308 pages, 13 MB) As the Legislature faces deliberations on the 1991-92 budget, the combination of underlying structural imbalances and a downturn in the California economy has resulted in an estimated two-year budget funding gap of almost $10 billion. The Governor's Budget seeks to address the budget problem through a combination of proposals to reduce existing state services and increase revenues, and contains a number of "prevention" proposals aimed at reducing the cost of existing services in future years. However, the Governor's budget does not fully address the funding gap and also raises concerns regarding its impacts on health and welfare program users, schools, and other affected groups. Ultimately, the Legislature must craft a plan that balances the need for state services with the need to address the state's underlying structural budget problem.