Sacramento, CA – The California Forward Action Fund (CFAF) on Wednesday launched its Yes on Proposition 2 Campaign to encourage voters to support the next element of bipartisan reforms that are restoring governance in California.
The Action Fund is the political affiliate of California Forward, the state’s premiere nonpartisan governance reform organization. CA Fwd in 2008 proposed comprehensive state budget reforms, including a mechanism to manage volatile revenue and stabilize funding for essential programs. CA Fwd worked with policymakers this year to help develop the proposal on the November ballot.
Proposition 2, approved with unanimous legislative support, would double the size of the California’s budget reserve; require mandatory debt payments; capture spikes in capital gains tax revenue; and, place funds in a lockbox until the next fiscal emergency.
“California’s dynamic economy is prone to booms and busts, and in turn the state’s revenue surges and drops,” said Jim Mayer, CEO of CA Fwd. “This volatility is predictable and the consequences are avoidable. Prop 2 will set aside money in good times and pay down debt. In lean years, the State will be better able to maintain essential services, especially to vulnerable Californians.”
Twice in this young century, California experienced big surges in revenue and public spending was increased. But within months, revenues dropped, budgets were slashed and billions were borrowed – eroding the quality of service and public confidence. Fiscal experts and credit agencies have urged California to better manage its revenue to prevent future cuts, borrowing, and temporary tax hikes.
“Saving in good times to help during the bad times is common sense and smart public policy. Proposition 2 is an essential step in California’s fiscal comeback,” said Phillip Ung, manager of the Action Fund’s campaign.
In addition to the California Forward Action Fund, supporters of Proposition 2 include the California Chamber of Commerce, California Democratic Party, California Republican Party, the League of Women Voters of California, California State Association of Counties, Howard Jarvis Taxpayers Association, and the League of California Cities.