Proposition 2 – Rainy Day Fund
IJ Action Recommendation: VOTE YES
Summary
Prop 2 would allow the state of California to deposit up to 20% of its tax revenue in a rainy day fund, an increase from the current 10% ceiling. It is also known as the “Save for California’s Future Act”.
Supporters Say
Supporters argue that a larger rainy day fund is necessary to help prepare the state for economic uncertainty in the future. They say simply that saving more money when economic times are good helps prepare the state for times when they are not so that essential services, such as education and health care, can still be covered. Prop 2 is largely supported by Governor Newsom and legislative Democrats.
Opponents Say
Opponents claim the revenue would serve as a “slush fund” for the state but do not have any evidence to support that claim. This measure faces little opposition, with only legislative Republicans and Reform California speaking out in opposition.
IJ Action Recommendation
VOTE YES. Recent budget deficits in our state have resulted in cutting essential services, such as healthcare for undocumented immigrants and mental health resources, making it clear that having more state savings is necessary to care for our most vulnerable populations. This is a common sense measure that simply allows the state to put more away in savings if necessary.
Yes Website
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No Website
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