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Offical Voter Info Guide Cal Statewide March 2, 2004 Primary Election 10-7-2003
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Ballot Measure Summary

Proposition 55
Proposition 56
Proposition 57
Proposition 58
  Arguments and Rebuttals
  Text of Proposed Law
Bond Overview

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)

Assembly: Ayes 80 Noes 0
Senate: Ayes 35 Noes 5

Graphic:  Silhouette of People
Copyright © 2004 California Secretary of State