‘Rainy Day’ account planned

By Rodney Woodson, Sports Editor

California’s latest multi-year drought coupled with the state’s deficit coerced Gov. Jerry Brown to introduce Proposition 2, the “Rainy Day” Budget Stabilization Account (Assembly Constitution Amendment 1).

This new legislation, if approved by voters in Tuesday’s election, will mandate a certain amount of the general fund be set aside and put into a budget stabilization account, only to be accessed in a time of emergency, such as the current condition of the state, effectively amending the California constitution.

If passed, work to calculate just how much will be put into the fund must begin within 10 days of its approval — an annual transfer of 1.5 percent of general fund revenues. It also requires the state to transfer capital gains tax revenues of at least 8 percent of general fund revenues into the stabilization account, according to the secretary of state’s website.

The bill also mandates that a Public School System Stabilization account be created to fund education in financial crises as well. The capital gains transfer will also be used for K-14 education’s emergency funding allocation.

Funding to aide education will only be issued in the event that the need for funds by the K-14 education system is greater than what the state can pay, based on the total allocations from various resources.

Supporters point to the drastic need for relief from the drought, and other crises the state suffers from at the moment.

Arguments opposing the state contend that the school system account funds will be spent to cover California’s debt just as other allocated educational funding is already being spent now.
Some who support Proposition 2 and hear the criticism claim to have faith and patience.

District Governing Board President John Marquez said the bill is needed, and that only “time will tell” to the fears of people who think negatively.

He said that there were doubts about the funds to be allocated to education from Proposition 30 in 2013, but the people voted for it anyway.

“In every election there are always propositions that will have positive and (possible) negative effects, years after they are approved,” Marquez said. “Elections will have that. But at the end of the day, the (positive outcome) will prevail.”