If my tax $ are going to be wasted on the land of fruits and nuts, I hope it’s to rebuild a collapsed dam. Otherwise, Californians can fix their own problems. Anyone who is physically harmed at this point has had ample warning to get out of the way. Let the mayhem begin!
California’s budget rainy-day fund is expected to grow to almost $8 billion
Even as his state budget plan detailed the reemergence of a potential deficit in the near future, Gov. Jerry Brown presented lawmakers with a fiscal blueprint that projects the state’s cash reserve will grow to $7.9 billion.
The passage of Proposition 2 in 2014 strengthened the state’s existing rainy-day budget reserve, a savings account first created by voters in 2004. In essence, the new law requires both a larger amount to be set aside each year and the paying of a portion of the state’s long-term debts.
Proposition 2 set the goal of a cash reserve fund that’s 10% of the amount of tax revenues collected that year. The proposed budget would set aside $1.2 billion, bringing the fund to 63% of its mandated target. That’s larger than it was required to grow after Brown and lawmakers agreed to make an extra $2-billion payment last summer.