SAN FRANCISCO (AP) — California will overhaul its rainy day fund to pay down more debt and provide a bigger buffer against future state budget shortfalls under a measure approved by voters.
About 71 percent of voters supported Proposition 2 Tuesday.READ MORE: South Bay Congressman Welcomes Afghan Refugees Arriving in Fremont
The measure is the result of years of negotiations to address California’s volatile budgeting, which typically means high spending during boom years and large deficits during recessions.4.3 Magnitude Earthquake Strikes Near Los Angeles
Voters first approved a rainy day fund in 2004, before the recession devastated the state budget. Former Gov. Arnold Schwarzenegger and lawmakers negotiated an overhaul during the 2010 budget crisis, but Democrats led by Gov. Jerry Brown put a different version before voters Tuesday.
The new measure will require the state to save 1.5 percent of its annual revenues, up to 10 percent of the state’s general fund.
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