State Budget. Budget Stabilization Account. Legislative Constitutional Amendment.

• Requires annual transfer of 1.5% of general fund revenues to state budget stabilization account.
• Requires additional transfer of personal capital gains tax revenues exceeding 8% of general fund revenues to budget stabilization account and, under certain conditions, a dedicated K–14 school reserve fund.
• Requires that half the budget stabilization account revenues be used to repay state debts and unfunded liabilities.
• Allows limited use of funds in case of emergency or if there is a state budget deficit.
• Caps budget stabilization account at 10% of general fund revenues, directs remainder to infrastructure.

Summary of Legislative Analyst's Estimate of Net State and Local Government Fiscal Impact:

• Some existing state debts would be paid down faster, resulting in long-term savings for the state.
• Changes in the level of state budget reserves, which would depend on the economy and future decisions by the Governor and the Legislature.
• Reserves kept by some school districts would be smaller.

Final Votes Cast by the Legislature on ACAx2 1 (Proposition 2)
(Res. Ch. 1, Stats. of 2013–14, 2nd Ex. Sess.)