Yes on Prop 2

[Brad Forschner]

A “yes” vote supports this amendment to:

• increase the Budget Stabilization Account (BSA) cap from 10% to 20% of estimated general fund proceeds of taxes;
• increase deposits into the BSA by counting capital gains revenue above 10% of general fund proceeds of taxes at 150% of its value in the deposit calculation; extend through the 2039-40 fiscal year the requirement that half of those funds be appropriated for debts and liabilities, and add federal loans to the state’s Unemployment Fund to the eligible obligations;
• exclude deposits into the BSA and the Projected Surplus Temporary Holding Account from the Gann Limit, while counting withdrawals against it; and
• provide that the governor’s May budget revision constitutes a proclamation of a budget emergency when the conditions for one exist.

Gov. Gavin Newsom (D):

“Putting money aside to protect ourselves from future uncertainties isn’t just good government; it’s common sense. California is strong and resilient, but we’re not immune to economic headwinds. At a time when our essential services are under pressure, we have a responsibility to safeguard the programs and investments that Californians rely on. I’m grateful for the Legislature’s partnership in advancing this proposal to ensure responsible fiscal stewardship in the face of future uncertainty.”

Speaker of the Assembly Robert Rivas (D-29):

“Californians live by a simple, bipartisan truth: set money aside when times are good so you’re ready when they’re not. As California’s leaders, we must step up and save more to protect the health care, school and affordable housing programs families count on. The Save For California’s Future Act is what responsible leadership looks like — and future taxpayers will thank us for it.”

Senate President pro Tempore Monique Limón (D-21):

“The Rainy Day Fund is critical to the annual California State Budget and helps mitigate cuts to state programs in difficult budget years. California has faced tough decisions, requiring legislators to dip into the fund to help fill the gaps — but there is more work to be done. Boosting the Rainy Day Fund will continue to provide a needed reserve for future years and protect programs that working families need.”

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