The state of California is up against an interesting problem - How do you do more with less? I have always found the process of public policy decision making fascinating. The process is well modeled by Neal Mitchell's public policy triangle. It is simple: decision makers must decide which initiatives to fund in order to create the most value for their constituents. If you follow Steven Covey's example of starting with a defined end state: the goal is to achieve stasis through creating the most value for your constituents by funding the right initiatives, while keeping a balanced budget.