This has been a longstanding goal of both the Legislature and the Governor, citing the erratic and volatile nature of the California economy as justification to increase available savings. ACA 20 will be voted on Thursday.
It's important to note that the measure would not automatically fund the reserve at 20% of statewide tax revenue, and the tricks we’ve seen used to avoid deposits or allow withdrawals will still be available. It will also maintain the practice of calculating the Prop 98 minimum guarantee prior to any transfers into the reserve account.
June 25 is the deadline for measures to qualify for the November ballot, including the permanent extension of Prop 55 and the so-called Billionaire’s Tax. Look for a summary of those measures from us in the coming days. In the meantime, don’t hesitate to reach out if you have any questions on ACA 20.
Thanks,
Christina
Christina Marcellus
Legislative Advocate | Capitol Advisors Group