Gov. Brown proposes new rainy day fund for November ballot
By Samuel Temblador
May 9, 2014 12:48 a.m.
Gov. Jerry Brown, along with several state and local officials proposed a new rainy day fund Thursday that voters will be able to decide on in November.
The new proposal, which may appear as a constitutional amendment to vote on in the November ballot, will replace a former fund proposal that would have provided emergency funding to the state in the event of an economic downturn. Brown made amendments to the proposal in response to Republican concerns over a potential lack of consistent deposits to the fund and loose controls on withdrawals.
Specifically, the new proposal would increase deposits to the rainy day fund whenever the state has higher capital gains revenues and allow the state to pay off its debts faster.
The proposal would also create a reserve fund specifically for Proposition 98, which provides funding for K-12 schools.
Democrats and Republicans came together to work on the legislation in an effort to ensure the state will save enough to effectively address future downturns while paying off current debt, Brown said in a statement.
“Republicans have long fought for this type of protection for Californians. The Governor set up a good framework for all of us to work from and we were determined to make sure this new reserve fund will be there during future economic downturns,” California Senate Minority Leader Bob Huff (R-Diamond Bar) said in a statement.
Officials are expected to begin voting on an agreement to pass the amended proposal next week.
