Structural Reform for California's Future
Californians agree that our broken budget system needs reform. Historically the state spends all the money it takes in during years of above average revenue growth, leading to unsustainable spending levels and budget deficits when revenues return to, or fall below, average levels.
By establishing a Rainy Day Fund, the May Revision builds off of the budget reforms the Governor proposed in January and ensures that California will be able to prevent future budget crises. The May Revision also proposes other structural reforms including modernizing the lottery, reexamining California's tax system and creating a last resort, tax-neutral safety net to bring responsibility, stability and predictability to our budget system.
