SDCTA Supports Proposition 44 - Strengthening the Rainy Day Fund
SDCTA SUPPORTS Assembly Constitutional Amendment 1 because it will help California budgeting by strengthening its "rainy day fund." It also establishes procedures to pay down debt. The Budget Stabilization Account or the states "rainy day fund," is currently capped at a level below the best practice for state reserves of 15 percent of annual spending. It is currently empty because transfers to it have been suspended and existing funds were withdrawn. This measure addresses these issues by increasing the cap from five percent to ten percent and limiting withdraws.