Proposition 2: Increases State’s Rainy Day Fund. Legislative Constitutional Amendment.
Proposition 2: Increases State’s Rainy Day Fund. Legislative Constitutional Amendment.
California would allow its rainy day fund to hold up to 20% of estimated state tax revenue, up from 10%, and save more during high capital-gains years.
A Yes vote
A No vote
Proposal impacts
Impact on taxpayers
Taxpayer rebates would follow a spending limit that counts reserve money when withdrawn rather than when deposited.
Taxpayer rebates currently follow a spending limit that counts reserve deposits when the state saves the money.
Impact on Neighborhood residents
Neighborhood projects could receive less state money when higher reserve deposits hold back funds otherwise available for infrastructure.
Neighborhood projects today can receive state infrastructure money after the existing reserve reaches its cap.
Impact on Public school students
Classroom lessons could receive money from a larger state reserve during downturns if lawmakers choose to fund schools.
Classroom lessons today receive funding under a state minimum for schools, with lawmakers dividing money among programs.
Impact on Patients
Health care visits could draw on greater emergency savings during downturns if lawmakers fund medical care.
Health care visits today have no guaranteed share of the existing state reserve.
