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134 Part I California Water <br /> environmental management challenges of the current era. Such redirection of <br /> science will be essential in an Era of Reconciliation. <br /> Finally,although money alone is not sufficient for successful water manage- <br /> ment, it is necessary. Those parts of the water system that rely primarily on <br /> ratepayer contributions—water supply and wastewater utilities—seem relatively <br /> well-positioned to meet their investment needs.In contrast,flood management, <br /> ecosystem management,and the state's overall strategic planning,monitoring, <br /> and technical functions have become dependent on unreliable state general <br /> obligation bond funding,often well below the levels needed to sustain adequate <br /> efforts. California residents have supported these bonds,while also voting to <br /> restrict local funding and state funding through fees on water users. Fiscal <br /> reforms are needed to provide the state with the financial capacity to adapt <br /> and strengthen water supply reliability and flood protection and to redress its <br /> failing aquatic ecosystems. <br /> Despite a history of hard-won successes in managing water, California's <br /> water system, designed in the 1930s for a very different economy and society, <br /> is showing signs of decay and potential disaster. The state is standing on the <br /> edge of a very real crisis as it faces the collapse of native ecosystems,the effects <br /> of droughts,threats of widespread flooding,and a conspicuous absence of gov- <br /> ernmental technical and political leadership and funding. <br /> Today's challenges are likely to become even more acute in the coming <br /> decades. As described in the next chapter, a range of natural, physical, eco- <br /> nomic,and demographic forces will increasingly threaten scarce water supplies <br /> and heighten the risk of continuing the ecological and economic deterioration <br /> of the state's water system. <br />