Beyond “Boom and Bust”? An Initial Analysis of the Governor’s Rainy Day Fund Proposal

The Legislature will gavel in a special session — called by Governor Jerry Brown — on California’s rainy day fund. In convening this session, the Governor released details of his own rainy day fund proposal, which would restructure the state’s existing rainy day fund, the Budget Stabilization Account (BSA). An alternative proposal known as ACA 4 — a constitutional amendment approved by the Legislature in 2010 and subject to voter approval — is currently scheduled to appear on the statewide ballot in November. The Governor is asking the Legislature for the two-thirds vote needed to replace ACA 4 on the ballot with his rainy day fund proposal. If then approved by voters, the Governor’s approach would be codified in the state Constitution.