On Nov. 8, 2005, California voters will decide whether to pass Proposition 76, known as the "Live Within Our Means Act." Sponsored by Gov. Arnold Schwarzenegger, the measure seeks to address state budget problems that have been particularly severe in California since 2002 due to cuts in state taxes and increases in state expenditures. Proposition 76 would create a new limit on how much the state government can spend each year, and it would grant the governor power to adjust state expenditures during the course of the budget year. It would also make significant changes in how the state's minimum funding guarantee for education works. This brief guide explains the basic provisions of Proposition 76 and how it would change existing law in California, including its impact on education's minimum funding guarantee.