Save for California’s Future Act.
Vote required
Two Thirds
Fiscal committee
No
Appropriation
No
Current location
Chaptered
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
The Save for California’s Future Act proposes amendments to the California Constitution to strengthen the state’s budget reserves. Specifically, it increases the limit on transfers to the Budget Stabilization Account from 10% to 20% of projected General Fund revenues. It also modifies the reporting requirements for the Department of Finance, increasing the amount of revenue estimated for transfer and requiring more detailed reporting on capital gains taxes. Furthermore, it expands the definition of a ‘budget emergency’ and allows for greater flexibility in using reserves to address fiscal challenges, including repayment of federal unemployment insurance loans.
Key provisions
- Increases the limit on transfers to the Budget Stabilization Account from 10% to 20% of estimated General Fund revenues.
- Requires the Department of Finance to report more detailed information on General Fund revenue sources, including capital gains taxes.
- Expands the definition of a ‘budget emergency’ to include conditions of disaster or extreme peril as declared by the Governor, or inadequate resources to fund General Fund expenditures.
- Allows the Governor to suspend or reduce transfers to the Budget Stabilization Account and Public School System Stabilization Account during a budget emergency.
- Permits the use of funds from the Budget Stabilization Account to repay federal loans related to unemployment insurance.
- Requires the Controller to transfer 1.5% of estimated General Fund revenues to the Budget Stabilization Account annually, starting in fiscal year 2027-28.
Bill text
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