BUDGET PROCESS. WELFARE. PROCEDURAL AND SUBSTANTIVE CHANGES. INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE. • Amends Constitution to allow Governor to declare "fiscal emergency" when budget not adopted or deficit exceeds specified percentages. Grants Governor, with restrictions, powers to reduce expenditures to balance budget including state salaries but not education (Proposition 98). • Amends statutes to eliminate or limit automatic cost of living adjustments in specified welfare programs. • Reduces AFDC by 10%, then 15% after six months on aid. Limits aid for new residents. Provides teenage recipients' school attendance incentives. • Gives counties discretion to set general assistance. • Implements as federal law permits. Other provisions. Summary of Legislative Analyst's Estimate of Net State and Local Government Fiscal Impact: • Potential state savings, or costs of up to several hundred million or billions of dollars in some years, depending on the budget situation. • Annual savings of about $680 million to the state General Fund and $35 million to counties, due to changes in the Aid to Families with Dependent Children (AFDC) Program. The savings are due primarily to grant reductions. Savings in years beyond 1993-94 could increase by an unknown, but potentially significant, amount, due to the effect of certain provisions. • Potential annual savings beginning in 1996-97--up to several hundred million dollars to the state and several million dollars to counties--due to elimination of automatic cost of living adjustments in the AFDC Program and the Supplemental Security Income/State Supplementary Program (SSI/SSP). • Unknown annual savings to counties--probably over $75 million and potentially several hundred million dollars--clue to payment limits and funding discretion in general assistance (GA) programs. These savings would be partly offset by additional GA costs of up to $30 million annually, due to the effects of the measure's AFDC provisions.
Popular Vote Results
Y: 4869305; A: 46.61; N: 5577061; B: 53.39
Initiative constitution and statutory
Pete Wilson, Governor, State of California; Joel Fox, President, Howard Jarvis Taxpayers Association; Maureen Dimarco, Secretary of Child Development and Education, State of California
Robyn C. Prud'Homme-Bauer, President, League of Women Voters of California; Reverend Les L. Sauer, Executive Committee, California Council of Churches; John F. Allard, Board Member, National Council of Senior Citizens
Rebuttal Against Author
Russell S. Gould, Secretary of Health and Welfare, State of California; Ingrid Azvedo, Former Chair, Federal Council on Aging; John A. Arguelles, Retired Justice, California Supreme Court
Budget Process. Welfare. Procedural and Substantive Changes. California Proposition 165 (1992).