Brown’s plan, which requires voter approval, entails an automatic 1.5% transfer into the fund from California’s general revenue fund as opposed to a 3% rate that’s traditionally been suspended by the governor for most years. The new proposal would require approval by Gov. Jerry Brown and the state legislature for making the transfer.
In 2010, Gatto attempted to boost the rate to 5% by authoring ACA 4, which has been postponed.
He praised Brown’s proposal.
“While broad budgeting and taxation reforms remain elusive, a rainy-day fund will stabilize California’s finances by taking the most volatile sources of state revenue and securing them until the inevitable downswings that are part of the business cycle,” Gatto said. “Graphing California’s annual revenues results in something that looks like a seismograph paper. We need a state savings account to be a calming force after the budgetary earthquakes caused by the recession and years of poor planning.”
Brown’s proposal will go before California voters in November.
Follow Arin Mikailian on Twitter: @ArinMikailian.