Requires annual transfer of 1.5% of general fund revenues to state budget stabilization account.
Requires 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.
Requires that half the budget stabilization account revenues be used to repay state debts and unfunded liabilities.
Allows 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.
Summary of Legislative Analysts Estimate of Net State and Local Government 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.