Proposition 2
Raise limit on rainy day fund deposits
This constitutional amendment would allow the state to deposit up to 20% of its general fund tax revenue in the state’s reserves, up from the current ceiling of 10%. The deposits would not count toward the voter-approved Gann Limit, which caps the amount state lawmakers can spend each year and requires excess funds to be returned to the people. It also authorizes spending some tax revenue to pay down California’s $20 billion federal unemployment insurance debt.
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Summary
Support
California’s tax revenue is volatile and relies heavily on the stock market. Supporters say raising the ceiling would allow the state to save more when the economy is booming, building a stronger reserve for economic downturns.
Oppose
Opponents say the state’s reserves can be used by politicians as a “slush fund,” and argue the measure would allow lawmakers to withhold more tax revenue without triggering the spending limit so as to avoid refunds to taxpayers.
People and organizations
Support
- California Democratic Party
- Legislative Democrats
- Gov. Gavin Newsom
Oppose
- Reform California
- Legislative Republicans
Campaign finance
Proposition committees raise money to support or oppose propositions. Outside groups can also raise and spend money independently to influence outcomes.
- Proposition committees
- Outside spending
- Difference to other side
Support
Oppose
Proposition committees
These committees are primarily formed to campaign for or against a proposition. They must identify donors who give $100 or more. There are no limits on how much donors can give. Below, we exclude donors whose contributions total less than $100.
Support
Oppose
Outside spending
Separate from proposition committees, outside groups can pay for ads, mailers and other efforts to influence voters. They can’t coordinate that spending with proposition committees. There is no limit on how much they can spend.
Support
Oppose
Ballot text
INCREASES STATE’S RAINY DAY FUND. LEGISLATIVE CONSTITUTIONAL AMENDMENT. Increases California’s Rainy Day Fund, approved by voters in 2014, to provide funding for education, health care, public safety, and other essential services during economic downturns. Fiscal Impact: State budget reserves would be higher.
Source: California Secretary of State
