Proposition 2 is State Budget. Budget Stabilization
Account. Legislative Constitutional Amendment. It is designed to change how the state pays down debt and saves money in reserves. It amends the State Constitution to end the existing rules for a state budget reserve, and replace them with new rules. If it passes, a new state law would go into effect that sets the maximum budget reserves school districts can keep at the local level in some future years. It also places in the Constitution an existing requirement for the Governors budget staff to estimate future state General Fund revenues and spending.
How will this affect us? Details
Below Proposition 2 will: - Require annul transfer of 1.5% of general fund revenues to state budget stabilization account - Require additional transfer of personal capital gains tax revenues exceeding 8% of general fund revenues to budget stabilization account and, under certain conditions, a dedicated K-14 school reserve fund - Require that half the budget stabilization account revenues be used to repay state debts and unfunded liabilities - Allow limited use of funds in case of emergency or if there is a state budget deficit - Caps budget stabilization account at 10% of general fund revenues, directs remainder to infrastructure
Fiscal Impact Some
existing state debts would be paid
down faster, resulting in long-term savings for the state. Changes in the level of state budget reserves, which would depend on the economy and future decisions by the Governor and the Legislature. Reserves kept by some school districts would be smaller.
Arguments in Favor of Proposition 2 Supporters Say: Prop. 2 establishes a strong constitutional reserve fund, which will force state government to save money and pay down debts. Prop. 2 will shield taxpayers from unnecessary tax increases and protect schools from devastating cuts.
Arguments in Favor of Proposition 2 (cont.) Supporters
of Prop. 2 believe that it will
force legislators to "live within their means" and will protect citizens from unnecessary tax increases. They say that the budget deficit of several years ago required the Legislature to make education cuts and that must be avoided in the future.
Arguments in Favor of Proposition 2 (cont.) http://votersedge.org/california/ballot
-measures/2014/november/prop-2
(Above
is well-written, compelling argument in favor of proposition 2)
Who Supports This?
1 UNITED BROTHERHOOD OF CARPENTERS AND JOINERS OF AMERICA (UBC) 2 CALIFORNIA ASSOCIATION OF HOSPITALS AND HEALTH SYSTEMS (CAHHS) 3 NETFLIX 4 AMERICAN COUNCIL OF ENGINEERING COMPANIES 5 HEALTH NET 6 STATE BUILDING & CONSTRUCTION TRADES COUNCIL OF CALIFORNIA (SBCTC) 7 INTERNATIONAL UNION OF PAINTERS AND ALLIED TRADES (IUPAT) 8 INTERNATIONAL ASSOCIATION OF BRIDGE, STRUCTURAL, ORNAMENTAL AND REINFORCING IRON WORKERS 9 SPO PARTNERS & CO 10 ABRAXIS BIOSCIENCE
Bibliography California
General Election https://cavotes.org/vote/election/2014/ november/4/ballot-measure/proposition-2 http://votersedge.org/california/ballot -measures/2014/november/prop-2 http://www.californiachoices.org/proposit ion-2 http://www.lwvbae.org/league-news/leagu e-election-publications-on-line/
