A little over a month ago, the California Budget Project published our analysis of Proposition 2, a measure that will appear on the November 4, 2014 statewide ballot and would make changes to how California sets aside revenue both to build up reserves and pay down state liabilities.
In recent weeks, we’ve published a blog series aimed at highlighting some of the key components of Proposition 2 and our take on them. With Election Day just around the corner, we’re bringing links to this full series together into a single post, in an effort to help our readers understand what Proposition 2 would do and its potential impact in the coming years.
Topics covered by our blog series have included the following:
Proposition 2’s substantial revisions to the state’s current budget reserve: CBP Director of Research Scott Graves looks at the changes that Proposition 2 would make to California’s existing reserve — the Budget Stabilization Account, or BSA — and some of the trade-offs that would likely result.
Proposition 2’s requirement that a portion of state revenues be set aside for paying down budgetary debt: Executive Director Chris Hoene examines a critical — but often overlooked — provision of Proposition 2: that a share of state revenues would be set aside each year for the next 15 years to pay down budgetary debt. This post discusses why this requirement is important and what it could mean for state finances in the near and long terms.
The total amount of revenues expected to be set aside each year under Proposition 2: Scott Graves discusses how much the state would potentially set aside each year — both to pay down state liabilities and add to the budget reserve — and points out that the annual amount would not necessarily be higher under Proposition 2 than under current policy.
What Proposition 2 would likely mean for state funding for K-12 schools and community colleges: Senior Policy Analyst Jonathan Kaplan discusses the new state reserve that Proposition 2 proposes to create for K-14 education. This post explains that the impact of this new reserve on state education funding would be negligible, although local districts’ reserves could be affected.
For our full analysis of Proposition 2 — which touches on the above issues along with other facets of the ballot measure — read our recent brief. And be sure to check out our website and this blog for further commentary on Proposition 2 as well as Proposition 47, another key measure on the November ballot.
— Steven Bliss