Proposition 2 is a Constitutional amendment which would change the requirements for the State's Budget Stablization Account, which was created in 2004, to force the government to pass an balanced budget each year. The measure would require half the revenues to be used to repay state debts as well as limiting use of remaining fund to emergencies and budget deficits. ACA 1 would amend Section 12.5 of Article IV and Sections 20-22 of Article XVI of the California Constitution.
For more information on this proposition, including voter resources, in-depth analysis, and endorsements, please see the California Choices web site.
Supporters of Proposition 44 contend that the measure will force the government to not over spend and both pay down debts and protect schools from cuts. They say the measure will stabalize the finances of the state by setting aside revenues instead of committing them to ongoing spending. They refer to the education reserve portion of the measure as a way to help support schools during times of financial hardship.
Opponents of the measure say that Proposition 44 will hurt schoolchildren by denying them Proposition 98 funding required under law. School districts are forced to "lower their reserves" anytime Proposition 44 is paid into. They claim those reserves are all that keep school districts operating when funding is cut or the state borrowing costs.