OFFICIAL TITLE AND SUMMARY
Prepared by the Attorney General

Proposition 58

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.

Final Votes Cast by the Legislature on ACAX5 5 (Proposition 58)