The California Balanced Budget Act. • Requires enactment of a balanced budget where General Fund expenditures do not exceed estimated General Fund revenues. • Allows the Governor to proclaim a fiscal emergency in specified circumstances, and submit proposed legislation to address the fiscal emergency. • Requires the Legislature to stop other action and act on legislation proposed to address the emergency. • Establishes a budget reserve. • Provides that the California Economic Recovery Bond Act is for a single object or work. • Prohibits any future deficit bonds. Summary of Legislative Analyst’s Estimate of Net State and Local Government Fiscal Impact: • Unknown net state fiscal effects, which will vary year by year and depend in part on actions of future Legislatures. • Reserve provisions may smooth state spending, with reductions during economic expansions and increases during downturns. • Balanced budget and debt limitation provisions could result in more immediate actions to correct budgetary shortfalls.
Legislative Vote Results
Final Votes Cast by the Legislature on ACAX5 5 (Proposition 58) -- Assembly: Ayes 80 Noes 0 -- Senate: Ayes 35 Noes 5 --
Popular Vote Results
Y:4056313; A:63.4; N:2348910; B:36.6; Abst:609551; C:8.69
ARNOLD SCHWARZENEGGER, Governor State of California; HERB J. WESSON, JR., Speaker California State Assembly; JENNY OROPEZA, Chairwoman Assembly Budget Committee --
RICHARD RIDER, Chair San Diego Tax Fighters; BRUCE HENDERSON, President Association of Concerned Taxpayers; JOE ARMENDARIZ, Executive Director Santa Barbara County Taxpayers Association --
Rebuttal Against Author
ARNOLD SCHWARZENEGGER, Governor State of California; BILL HAUCK, Chairman California Constitution Revision Commission; ALLAN ZAREMBERG, Chairman California Chamber of Commerce --
The California Balanced Budget Act California Proposition 58 (2004).