In light of the state’s budget surplus, Governor Jerry Brown wants to pay down the debt and increase California’s rainy day fund. And, as things go in Sacramento, Democrats and Republicans are at odds on how best to do so.
Governor Brown has called for state legislators to debate his new proposal tomorrow in a special meeting. He wants to replace the current proposal set to appear on the November ballot with one that would increase deposits to accommodate fluctuations in “volatile” capital gains revenues.
The new proposal would also create a special reserve for California schools, allow supplemental payments toward paying off California’s debt when the state is in the black, and raise the maximum size of the rainy day fund to ten percent of general fund revenue.
As the proposal stands now, three percent of annual revenue is funneled into a reserve fund, even in years when California is running a deficit, but there are no restrictions on how often that fund can be accessed for state expenditures.
How should California handle its reserve fund? Is it possible to pass this legislation without the Democratic supermajority? Will state politicians be able to collaborate on the rainy day fund and other upcoming proposals?
Assemblywoman Connie Conway, (R-Tulare) leader of the California Assembly Republicans, representative of the 23rd assembly district
Assemblyman Mike Gatto, assemblymember for California’s 43rd district, which include Silver Lake, Atwater Village, and Burbank