Legislative Democrats Empower California Voters to Strengthen Rainy Day Fund, Deliver Constitutional Amendment to Increase Reserves and Protect Future Generations

The Save For California's Future Act allows the state to place more in its reserves, saving money during strong fiscal years so as to better weather possible economic downturns. This strengthening of the rainy day fund positions California to further protect health care and essential services, and support future generations. The measure is eligible to appear on the November ballot.

SACRAMENTO - On Thursday, Legislative Democrats voted to pass the Save For California's Future Act - strengthening the state's rainy day fund and protecting health care, schools and public safety for future generations.

With this vote, the Assembly took decisive action that empowers voters to allow the state to save more in strong years so that California can better withstand economic shocks, respond to emergencies and maintain investments in the services families rely on most.

What Assembly 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 are stepping-up to save more, protecting the health care, schools 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

"Just like California families save for emergencies and unexpected expenses, our state government should set aside funding during good years to protect schools, public safety, and essential public services. By placing this proposal on the November ballot, we are giving California voters the power to create a stronger and more resilient Rainy Day Fund. ACA 20 is an investment in California's future and a commitment to responsible stewardship for future generations."

-Assemblymember Jesse Gabriel (D-Encino), Chair of the Assembly Budget Committee and author of ACA 20

"Growing up, my family owned a small business. I learned early how saving responsibly allows us to weather the unexpected. I carry that lesson with me today. ACA 20 brings that same financial discipline to our state budget, so we can prepare during strong years and protect families without raising taxes. It is our duty to leave the next generation a stronger California than the one we inherited."

-Assemblymember Avelino Valencia (D-Anaheim), Chair of the Assembly Banking and Finance Committee

California Leaders Step-Up to Protect Future Generations

The Save For California's Future Act passed by the Legislature today:

• Increases the constitutional cap on California's main rainy day fund, from 10% to 20%
• Fully protects guaranteed funding for California's public schools
• Increases the amount saved in the rainy day fund during years when taxes generated by capital gains and other asset-related income reach especially high levels
• Extends the requirement that certain funds be dedicated to paying down state liabilities and expands the types of liabilities that can be paid down, including for schools and federal Unemployment Insurance loans

The act is eligible to go before voters on the 2026 November ballot.