California Special Session
On Wednesday, Governor Edmund G. Brown, Jr., called a special session in the Legislature of the State of California to review the Rainy Day Fund that was placed on the November ballot. The session will start on Thursday, April 24.
Early this year, the Governor proposed changes which he claims will strengthen the Rainy Day Fund by allowing the state to pay down its debts and unfunded liabilities. The changes include providing for the increase in deposits during spikes in capital gains revenue; allowing supplemental payments toward the state’s debts and liabilities; and limiting withdrawals. The Governor would also create Proposition 98, a reserve of school funding and a prevention against future cuts. This reserve would not affect the guaranteed level of funding for the schools.