ACA 1: Public finance.

The proposed amendment to the California Constitution aims to change the way the state finances its budget. Currently, the state transfers 1.5% of estimated general fund revenues to a budget stabilization account by October 1st each year. This measure would replace the fixed 1.5% transfer with an undetermined percentage of the estimated general fund revenues. Additionally, the 10% limit on the balance in the budget stabilization account would be increased to 20% of the amount of general fund proceeds of taxes for the fiscal year estimate. These changes would allow the state to better manage its finances and respond to changing economic conditions.