By Mary O’KEEFE

There will be 13 state measures – propositions – on the ballot in the November election including state measures 2, 3, 4, 5, 37, 38, 39, 40, 41, 42, 43, 44 and 45. 

In Los Angeles County there are county measures A and E. 

This is also the year when California will decide on a new governor as Gov. Gavin Newsom is termed out. Overall it is a bit daunting; however, as President Franklin D. Roosevelt (FDR) is quoted as saying: “Nobody will ever deprive the American people of the right to vote except the American people themselves and the only way they could do this is by not voting.”

FDR said this on Oct. 5, 1944 during a radio address from the White House just before that year’s presidential election. 

Here is some information on State Measure 2 from California’s Legislative Analyst’s Office (LAO):

State Measure 2 – Increases State’s Rainy Day Fund. Legislative Constitution Amendment: A Yes or No vote. 

If approved this would change the way the state saves for the Rainy Day Fund and would require an amount to be set aside for extra debt payments. 

The California State Constitution requires the state to save money in a Rainy Day Fund. Among the requirements at present is that the state must deposit 0.75% of the general fund tax revenues in this fund annually. Then funds in the Rainy Day Fund – its actual name is the Budget Stabilization Account – can be used for state programs. The state must put more money in the Rainy Day Fund in years when revenue from taxes on investment gains is higher than normal. The only time these deposits can be stopped and/or money can be taken out of the fund is during a budget emergency. 

“The state has more than $250 billion in debts. These include debt for infrastructure and pension and retiree health benefits earned by state employees. The state also sometimes borrows money from other state funds to help pay general fund costs. State debts are repaid over time, usually according to a schedule or plan. Each year, the state makes payments toward its debts,” according to the LAO.

If Measure 2 is passed, the state would be required to make deposits into the Rainy Day Fund until it reaches 20% of the general fund; at present it is a requirement of 10%. It also requires the state to make “extra debt payments through 2040 instead of through 2030.”

In addition, “The state has an account to set aside funds when revenues are surging. By setting these funds aside, the state can avoid overspending when revenue estimates are particularly uncertain. Under Proposition 2, deposits into this account also would not count toward the state appropriations limit. Instead, the money would count toward the limit when it is taken out. This exclusion could not be larger than 10% of general fund taxes in each year,” according to LAO. 

The fiscal effects, according to LAO, would mean the budget reserves would be higher. 

A yes vote approves state measure 2; a no vote will leave the Rainy Day Fund as it is now. 

According to CalMatters:

Opponents to state measure 2 say it could be used by politicians as a “slush fund” and it would allow lawmakers to withhold more tax revenue without triggering the spending limit to avoid refunds to taxpayers. 

Supporters of state measure 2 say the tax revenue in the state is volatile and relies heavily on the stock market and raising the ceiling from 10% to 20% would allow the state to save more when the economy is booming, building stronger reserves during economic downturns. 

In the weeks to come prior to the election CVW will be looking at other state measures on the ballot.