While many of this year’s 14 ballot measures have heavily funded support or opposition, Proposition 2: Budget Stabilization Account Cap Increase and Gann Limit Changes Amendment, has received no funding in support or opposition, so you may not have heard of it. 

Nevertheless, this is an important proposition worthy of your attention. 

The proposition was placed on the ballot by a vote of the state Legislature. A two-thirds vote by both the State Assembly and Senate is required to place a measure on the ballot. The vote was along party lines with 75% of the Assembly and 73% of the Senate voting in favor.  

To understand Proposition 2, we must examine the current law, which is somewhat complicated. 

In 2014, another state measure (coincidentally also called Proposition 2) amended the state constitution to provide for the Budget Stabilization Account (“BSA”) and the Public School System Stabilization Account (“PSSSA”). The idea was to transfer a certain percentage of general fund revenue to these accounts, which could only be drawn down in a state emergency. 

The BSA is essentially the state’s rainy day fund, which would be used to avoid tax increases during recessionary........

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