ACA 1 — A resolution to propose to the people of the State of California an amendment to the Constitution of the State, by directing the Secretary of State to withdraw from the consideration of the people of the State of California Assembly Constitutional Amendment No. 4 (Resolution Chapter 174 of the Statutes of 2010) and proposing to the people of the State of California an amendment to the Constitution of the State, by adding Section 12.5 to Article IV thereof, and by adding Sections 21 and 22 to, and repealing and adding Section 20 of, Article XVI thereof, relating to state finance.

Summary

Existing provisions of the California Constitution require the Governor to submit to the Legislature a budget for the ensuing fiscal year within the first 10 days of each calendar year and prohibit the Legislature from sending to the Governor for consideration a Budget Bill that would appropriate from the General Fund a total amount that exceeds General Fund revenues for that fiscal year estimated as of the date of the Budget Bill's passage. This measure would require the Director of Finance to submit estimates of General Fund revenues and expenditures for the ensuing fiscal year and the 3 fiscal years thereafter within 10 days following the submission of a budget by the Governor, following the submission of proposed adjustments to the Governor's Budget, as required by statute, and following the enactment of the Budget Bill. Existing provisions of the California Constitution require the Legislature to establish a prudent state reserve fund in an amount the Legislature deems reasonable and necessary. Existing provisions of the California Constitution, approved by the electors on March 2, 2004, additionally establish the Budget Stabilization Account in the General Fund and require the Controller, commencing no later than September 30, 2006, and for each fiscal year thereafter, to transfer from the General Fund to the account a specified percentage of estimated General Fund revenues. Section 8 of Article XVI of the California Constitution (Proposition 98) sets forth a formula for computing the minimum amount of General Fund revenues that the state is required to appropriate for the support of school districts, as defined, and community college districts for each fiscal year. This measure would establish a replacement version of the Budget Stabilization Account, and would require the Controller, commencing with the 2015–16 fiscal year and each fiscal year thereafter, to transfer from the General Fund to the account 1.5% of the estimated amount of General Fund revenues for that fiscal year. Commencing with the 2015–16 fiscal year, this measure would also require the Controller to annually transfer from the General Fund to the account amounts determined pursuant to specified formulae, consisting of General Fund proceeds of taxes derived from personal income taxes paid on net capital gains that exceed a designated level, based on estimates provided in the Budget Act. This measure, for the 2015–16 fiscal year through the 2029–30 fiscal year, would require the Legislature to appropriate 50% of these total amounts for one or more designated fiscal obligations of the state, including accrued school funding obligations, repayment of budgetary loans, payment of accrued claims for mandate costs, and payment of unfunded pension liabilities and prefunding of other postemployment benefits. For the 2030–31 fiscal year and each fiscal year thereafter, this measure would instead authorize the Legislature to appropriate up to 50% of these total amounts for one or more of these designated fiscal obligations of the state. This measure would require the Department of Finance, commencing with the 2015–16 fiscal year, to annually report to the Legislature certain fiscal information necessary to calculate the amount of the transfer from the General Fund to the Budget Stabilization Account for that fiscal year, and would require certain of these estimates to be included in the annual Budget Act. Commencing with the 2017–18 fiscal year, the measure would require the department to provide updated estimates for each of the 2 preceding fiscal years, calculated separately, for the purpose of determining the maximum allowable transfer from the General Fund to the Budget Stabilization Account for each of these fiscal years. This measure would prohibit the balance in the Budget Stabilization Account from exceeding 10% of estimated General Fund proceeds of taxes. It also would limit the use of funds, that otherwise would be transferred to the account, to appropriation for the funding of infrastructure, as defined in a specified statute, including deferred maintenance. This measure would establish the Public School System Stabilization Account, to provide a reserve for public school funding. Commencing with the 2015–16 fiscal year and pursuant to specified calculations, the Controller would transfer certain moneys from the General Fund into the Public School System Stabilization Account, for subsequent allocation to school districts and community college districts in fiscal years for which the minimum state funding obligation under Proposition 98 falls below specified levels. The measure would prohibit the transfer of moneys into the Public School System Stabilization Account for a fiscal year for which a maintenance factor is created under Proposition 98 or before a previously determined maintenance factor has been fully reimbursed. The measure would also prohibit the transfer of funds into the account in a fiscal year in which provisions of Proposition 98 have been suspended. The funds transferred into the Public School System Stabilization Account under the measure in a fiscal year would be counted toward the state's annual funding obligation for that fiscal year under Proposition 98, rather than in a fiscal year in which those funds are allocated. The measure would authorize the Controller to utilize funds in the account, that he or she determines to be unnecessary to meet foreseeable obligations, to help manage General Fund daily cash flow needs if that use does not interfere with the purpose of the account. Existing provisions of the California Constitution authorize the Governor to issue a proclamation declaring an emergency in specified circumstances. This measure would authorize the Legislature, upon the Governor's proclamation declaring a budget emergency, as described, to enact a statute that returns funds from the Budget Stabilization Account to the General Fund for appropriation to address the budget emergency, appropriates funds in the Public School System Stabilization Account for the support of school districts and community college districts, or suspends or reduces the transfer of funds from the General Fund to the Budget Stabilization Account or the Public School System Stabilization Account. Existing law requires the Secretary of State to submit ACA 4 of the 2009–10 Regular Session, a proposed legislative constitutional amendment relating to state finance, to the voters at the November 4, 2014, statewide general election. This bill would direct the Secretary of State to withdraw ACA 4 from the ballot.

Bill Text

• Chaptered 05/16/14 - Chaptered Current pdf May 16, 2014
• Enrolled 05/15/14 - Enrolled pdf May 15, 2014
• Amended 05/12/14 - Amended Assembly pdf May 12, 2014
• Introduced 04/24/14 - Introduced pdf April 24, 2014
• ACA1 View text html

Action History

1. May 16, 2014

   Chaptered by Secretary of State. Res. Chapter 1, Statutes of 2013-14 Second Extraordinary Session.

2. May 16, 2014

   Enrolled and filed with the Secretary of State at 1 p.m.

3. May 15, 2014

   In Assembly. Ordered to Engrossing and Enrolling.

4. May 15, 2014

   Ordered to the Assembly.

5. May 15, 2014

   Read third time. Adopted. (Ayes 36. Noes 0.)

6. May 15, 2014

   Read second time.

7. May 15, 2014

   Art. IV, Sec. 8(b) of the Constitution dispensed with. (Ayes 36. Noes 0.)

8. May 15, 2014

   Read first time.

9. May 15, 2014

   In Senate.

10. May 15, 2014

    Ordered to the Senate.

11. May 15, 2014

    Read third time. Adopted. (Ayes 78. Noes 0. Page 40.)

12. May 15, 2014

    Assembly Rule 63 suspended. (Page 39.)

13. May 15, 2014

    Read second time. Ordered to third reading.

14. May 14, 2014

    From committee: Be adopted. (Ayes 9. Noes 0.) (May 14).

15. May 13, 2014

    Re-referred to Com. on BUDGET.

16. May 12, 2014

    From committee chair, with author's amendments: Amend, and re-refer to Com. on BUDGET. Read second time and amended.

17. April 28, 2014

    Referred to Com. on BUDGET.

18. April 25, 2014

    From printer.

19. April 24, 2014

    Read first time. To print.

Sponsors

• Wolk · Cosponsor
• Wilk · Cosponsor
• Vidak · Cosponsor
• Steinberg · Cosponsor
• Sharon Quirk-Silva · Cosponsor
• Olsen · Cosponsor
• Nielsen · Cosponsor
• Al Muratsuchi · Cosponsor
• Medina · Cosponsor
• Linder · Cosponsor
• Leno · Cosponsor
• Huff · Cosponsor
• Hill · Cosponsor
• Hernandez · Cosponsor
• Harkey · Cosponsor
• Gorell · Cosponsor
• Gatto · Cosponsor
• Galgiani · Cosponsor
• Fuller · Cosponsor
• Fox · Cosponsor
• Corbett · Cosponsor
• Cooley · Cosponsor
• Conway · Cosponsor
• Chávez · Cosponsor
• Cannella · Cosponsor
• Anderson · Cosponsor
• Achadjian · Cosponsor
• De León · Cosponsor
• Salas · Cosponsor
• Atkins · Cosponsor
• Corey A. Jackson · Cosponsor
• V. Manuel Pérez · Primary
• Bill Berryhill · Cosponsor
• Beth Gaines · Cosponsor

Votes

Subjects