Proposition 2: Raise limit on rainy day fund deposits
This constitutional amendment would allow the state to deposit up to 20% of its general fund tax revenue in the state’s reserves, up from the current ceiling of 10%. The deposits would not count toward the voter-approved Gann Limit, which caps the amount state lawmakers can spend each year and requires excess funds to be returned to the people. It also authorizes spending some tax revenue to pay down California’s $20 billion federal unemployment insurance debt.
