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before the start of any fiscal year, the City might experience delays in receiving certain expected revenues. The City is authorized to borrow temporary funds to cover its annual cash flow deficits, and as a result of the White decision, the City might find it necessary to increase the size or frequency of its cash flow borrowings, or to borrow earlier in the fiscal year. The City does not expect the White decision to have any long -term effect on its operating budgets. The Budget Process The State's fiscal year begins on July 1 and ends on June 30. According to the State Constitution, the Governor must propose a budget to the State Legislature no later than January 10 of each year for the next fiscal year (the "Governor's Budget "). Under State law, the annual proposed Governor's Budget cannot provide for projected expenditures in excess of projected revenues and balances available from prior fiscal years. Following the submission of the Governor's Budget, the California State Legislature (the "Legislature ") takes up the proposal. Under the State Constitution, money may be drawn from the Treasury only through an appropriation made by law. The primary source of the annual expenditure authorizations is the Budget Act as approved by the Legislature and signed by the Governor. Under an initiative constitutional amendment approved by the State's voters on November 2, 2010 as "Proposition 25 ", a final budget must be adopted by a majority vote of each house of the Legislature no later than June 15, although this deadline has been routinely breached in the past. Any tax increase provision of such final budget shall continue to require approval by a two - thirds majority vote of each house of the State Legislature. The budget becomes law upon the signature of the Governor, who may reduce or eliminate specific line items in the Budget Act or any other appropriations bill without vetoing the entire bill. Such individual line item vetoes are subject to override by a two - thirds majority vote of each House of the Legislature. Appropriations also may be included in legislation other than the Budget Act. Bills containing appropriations (except for K -14 education) must be approved by a two - thirds majority vote in each House of the Legislature and be signed by the Governor. Bills containing K -14 education appropriations only require a simple majority vote. Continuing appropriations, available without regard to fiscal year, may also be provided by statute or the State Constitution. Funds necessary to meet an appropriation need not be in the State Treasury at the time such appropriation is enacted; revenues may be appropriated in anticipation of their receipt. The City's budget must generally be adopted by July 1, and revised by the City Council within 35 days after the Governor signs the budget act to reflect any changes in budgeted revenues and expenditures made necessary by the adopted State budget. The Governor signed the 2010 -11 Budget on October 8, 2010, the latest budget in State history. Tax Shifts and Triple Flip Assembly Bill No. 1755 ( "AB 1755 "), introduced March 10, 2003 and substantially amended June 23, 2003, requires the shifting of property taxes between redevelopment agencies and schools. On July 29, 2003, the Assembly amended Senate Bill No. 1045 to incorporate all of the provisions of AB 1755, except that the Assembly reduced the amount of the required the shift away from the Education Revenue Augmentation Fund ( "ERAF ") to $135 million. Legislation commonly referred to as the "Triple Flip," was approved by the voters on March 2, 2004, as part of a bond initiative formally known as the "California Economic Recovery Act." This act authorized the issuance of $15 billion in bonds to finance the 2002 -03 and 2003 -04 State budget deficits, which are payable from a fund established by the redirection of tax revenues through the "Triple Flip." Under the "Triple Flip ", one - quarter of local governments' 1 % share of the sales tax imposed on taxable transactions within their jurisdiction 20