California faces a daunting budget crisis following the negative result of the May 19, 2009 election. The Governor has only a limited field of action given political and constitutional realities. One option open to him is negotiations with local governments in which greater autonomy in expenditure or taxation could be exchanged for current dollars. While such a trade could be proposed to all local governments, the limited time left for the Governor suggests that the cities may be most appropriate partners. Exchanges that free cities from spending restrictions or open new tax preserves to them could lower the current deficit and strengthen home rule, which was weakened by Proposition 13.