About:
Increase the cap on the Rainy Day Fund from 10% to 20% of General Fund Tax Revenue
Deposits to the Fund would no longer count towards the State spending limit
Extend the extra debt payment from 2030 to 2040
Argument for:
Would help prepare California for future economic decline by allowing the state to save more money during higher revenue years
Protect public services (schools, healthcare, etc)
Arguments against:
Concerns the state will keep taxpayers money and won’t refund taxpayers either
Concern they will hold the money instead of using it on current public services that need attention
Supporters:
Legislative Democrats
Gov. Gavin Newsom
California Democratic Party
Opposers:
Reform California
Legislative Republicans