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Citizens Initiative and Recall
California needs a rainy-day fund that works
California needs a rainy-day fund that works

At Gov. Jerry Brown's request, lawmakers will start working next week on a rainy-day fund to better prepare the state for the inevitable next downturn. The fund is such a sensible idea that the state already has one: the Budget Stabilization Account, which was created by Proposition 58 in 2004. The problem is that it doesn't work. And an initiative to create another flawed version is already on the November ballot. Brown has suggested a third version with several improvements that would address the problem of volatile revenues more directly, but his proposal would do too little to curb irresponsible spending. Existing law requires the state to set aside 3% of the income taxes,...

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