Proposition 2 Prop 2 Amend the state Constitution

Prop 2 Amend the state Constitution so that the amount of money that goes

Pros and Cons Pros: ● Limits state officials spending ● Plans for paying back

No on Prop 2 ● No requirement to pay off state debts ● 0.

Yes on Prop 2 ● Budget Stabilization Account (rainy day fund) would receive 1.

Social Impact Will make taxpayers happy that they don’t have to pay extra taxes

Fiscal Impact ● Saves money for future needs ● reduces debt and can pay

Our approach We will distribute pamphlets to the low socioeconomic class. -Sac State financial

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Proposition 2

Prop 2 Amend the state Constitution so that the amount of money that goes into the state budget reserve would be changed. Proposition 2 would alter current requirements for California’s rainy day budget.

Pros and Cons Pros: ● Limits state officials spending ● Plans for paying back debts ● lessens the risk of tax increases and budget cuts ● Republicans and Democrats support this Prop ● In years when revenue is specifically high excess fund will be put into an emergency fund for schools Cons: ● School districts would receive funds rarely. ● The emergency fund for each school district can not be bigger than 10% of its yearly budget.

No on Prop 2 ● No requirement to pay off state debts ● 0. 75% of the Gen. Fund goes into Budget Stabilization Account (Rainy day fund) ● Minimum amount that goes into the RDF can be waived by Governor at any time ● State can withdraw from RDF ● Maximum size of RDF. : $8 billion or 5% of Gen. Fund ● No state reserves for schools or community colleges ● No cap on school district reserves

Yes on Prop 2 ● Budget Stabilization Account (rainy day fund) would receive 1. 5% of the General Fund ● Half of G. F. revenues would be used to repay state debts (15 years) ● Minimum RDF fund deposits would only be changed when a “budget emergency” is declared by the Governor and approved by Legislature ● Max. size of RDF: 10% of Gen. Fund revenues ($11 billion) ● State reserve would be created for public schools and community colleges (when economy is strong) ○ School district budget reserves would be capped

Social Impact Will make taxpayers happy that they don’t have to pay extra taxes in recession.

Fiscal Impact ● Saves money for future needs ● reduces debt and can pay debts already accumulated ● Extra money incase of emergencies ● Does not do much to help schools in financial need

Our approach We will distribute pamphlets to the low socioeconomic class. -Sac State financial aid office -Food banks -Salvation army

What could it look like?