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Measure Details

Stabilizes State Budget. Reforms California Budget Process. Limits State Spending. Increases "Rainy Day" Budget Stabilization Fund.

California Ballot Measure - Proposition 1A

Election: May 19, 2009 (Special)
Outcome: Failed

Government Budget and Spending


* Increases size of state "rainy day" fund from 5% to 12.5% of the General Fund.
* A portion of the annual deposits into that fund would be dedicated to savings for future economic downturns, and the remainder would be available to fund education, infrastructure, and debt repayment, or for use in a declared emergency.
* Requires additional revenue above historic trends to be deposited into state "rainy day" fund, limiting spending.

Summary of Legislative Analyst's Estimate of Net State and Local Government Fiscal Impact:

* Higher state tax revenues of roughly $16 billion from 2010-11 through 2012-13 to help balance the state budget.
* In many years, increased amounts of money in state "rainy day" reserve fund.
* Potentially less ups and downs in state spending over time.
* Possible greater state spending on repaying budgetary borrowing and debt, infrastructure projects, and temporary tax relief. In some cases, this would mean less money available for ongoing spending.

Measure Text

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