• Noah Marty
• Legislative/Communications Assistant
• [email protected]

SACRAMENTO, CA - Today, Assemblymember Jesse Gabriel and state leaders announced Assembly Constitutional Amendment (ACA) 20, the Save For California's Future Act - a proposed constitutional amendment that strengthens the rainy day fund to better prepare for economic uncertainty and protect future generations of Californians.

Authored by Assemblymember Gabriel, ACA 20 would help California protect core programs and safeguard access to critical resources that millions rely on by increasing the cap on the state's rainy day fund.

California families understand and expect responsible financial planning - setting aside savings during the good times to prepare for unexpected challenges should they come. The state must continue to operate with the same fiscal prudence.

"Even as we navigate our current budget challenges, we must take steps to build a stronger financial foundation for future generations," said Assemblymember Jesse Gabriel (D-Encino), Chair of the Assembly Budget Committee and author of ACA 20. "By strengthening California's Rainy Day Fund, we can protect funding for schools and essential public services, better weather future economic downturns, and leave our children a stronger, more resilient California. This proposal is an investment in California's future and a commitment to responsible stewardship for future generations."

ACA 20 will be heard on Wednesday, June 24, at 9 AM PDT in Assembly Budget Subcommittee No. 7 on Accountability and Oversight. Immediately following the hearing, Assemblymember Gabriel will hold a media availability via zoom to discuss the proposal.

What California's Leaders are Saying

"Californians live by a simple, bipartisan truth: set money aside when times are good so you're ready when they're not. As California's leaders, we must step up and save more to protect the health care, school and affordable housing programs families count on. The Save For California's Future Act is what responsible leadership looks like - and future taxpayers will thank us for it." -Speaker of the Assembly Robert Rivas

"As we have learned from past spending and recent budget uncertainties, California should be more mindful during budget surplus years to ensure a savings safety net for future generations of Californians. California's economy is dynamic, but it is also vulnerable. It is high time California updates its fiscal playbook. I look forward to working with my colleagues in the legislature and the administration to get this critical work to the end zone." -Assemblymember Avelino Valencia (D-Anaheim)

"In politics, rhetoric too often takes priority over results. A stronger rainy day fund represents exactly the kind of results that will help California flourish over the long-term, by protecting public services and stabilizing our tax base." -Brian Brennan, Executive Director of the 21st Century Alliance

Background on ACA 20

The Save For California's Future Act would deliver greater stability for California taxpayers by creating a stronger financial foundation - one that better prepares for uncertainty and helps preserve the services, programs and benefits that families rely on most.

While the state's economy is among the largest and most dynamic in the world, it is also subject to the same economic cycles and fluctuations in revenue experienced by every nation. Natural disasters, public health emergencies and other unforeseen events can place significant strain on the state budget.

When state revenues decline during economic downturns, insufficient reserves can force difficult choices that disrupt the essential programs and services that California families, workers and businesses need to survive.

Building and maintaining strong budget reserves during periods of economic growth is not just the right thing to do: It protects Californians from sudden reductions in essential services and mitigates the need for drastic corrective actions during periods of fiscal stress.

Just like families save for emergencies and unexpected expenses, California should save during good years to protect schools, public safety and vital programs.

The Legislature is scheduled to vote on the Save For California's Future Act on Thursday, June 25. If passed by the Legislature, it will be before voters on the November ballot.