California leaders to ask voters to improve state’s ability to save money
ALL RIGHT, NOW LET’S GO TO A LIVE PICTURE OF THE STATE CAPITOL. AND THIS YEAR, CALIFORNIA LAWMAKERS AND THE GOVERNOR PLAN TO ASK VOTERS TO HELP THEM SAVE MONEY. KCRA THREE POLITICAL DIRECTOR ASHLEY ZAVALA JOINS US NOW TO BREAK ALL THIS DOWN. ASHLEY, WHY NOW AND HOW DO THEY PLAN TO DO THIS? WELL, CURTIS AND LISA, STATE LEADERS WANT THE ABILITY TO SET MORE MONEY ASIDE FOR A RAINY DAY, BUT THEY NEED TO CHANGE THE CALIFORNIA CONSTITUTION IN ORDER TO DO SO. THERE ARE LIMITS TO THIS. DEMOCRATIC STATE LAWMAKERS AND THE GOVERNOR ARE MOVING QUICKLY ON A BALLOT MEASURE THAT VOTERS HERE ARE EXPECTED TO SEE IN NOVEMBER. THIS IS SPECIFICALLY KNOWN AS THE SAVE FOR CALIFORNIA’S FUTURE ACT. IT INCREASES THE MAXIMUM AMOUNT OF MONEY THAT CAN BE IN THE STATE’S RAINY DAY FUND, FROM 10% OF THE GENERAL FUND TO 20%. UNDER THIS PROPOSAL. IT WOULD ALSO INCREASE THE SIZE OF MANDATORY DEPOSITS FOR THE STATE’S RESERVES. IT ALSO UPDATES THE LIST OF ELIGIBLE DEBT REPAYMENTS THAT CAN BE PAID FOR OUT OF THE RAINY DAY FUND. THAT WOULD INCLUDE PUBLIC SCHOOLS, DEBT, BUDGET DEBT AND ALSO THE OUTSTANDING MORE THAN $20 BILLION IN DEBT THAT THE STATE OWES TO THE FEDERAL GOVERNMENT RIGHT NOW FOR COVID 19 UNEMPLOYMENT BENEFITS. THE LEADER OF THE STATE ASSEMBLY’S BUDGET COMMITTEE SAYS THIS IS A COMMON SENSE MEASURE. I EXPECT THAT WE WILL HAVE A LOT OF, YOU KNOW, IMPORTANT FOLKS THAT ARE GOING TO WEIGH IN IN SUPPORT OF THIS EFFORT. BUT ULTIMATELY, I HAVE A GREAT DEAL OF CONFIDENCE THAT IT’S GOING TO RESONATE WITH VOTERS BECAUSE IT RESONATES WITH THEIR COMMON SENSE, LIVED EXPERIENCE, WHICH IS THAT YOU SHOULD PUT SOME MONEY AWAY DURING A RAINY DAY TO PUT SOME MONEY AWAY DURING A, DURING, DURING GOOD TIMES TO BE PREPARED FOR RAINY DAY. SO I AM, I’M ACTUALLY QUITE OPTIMISTIC THAT THAT THERE’S GOING TO BE A STRONG CAMPAIGN HERE, BUT ULTIMATELY, AT ITS BASE LEVEL, THIS IDEA IS JUST GOING TO RESONATE DEEPLY WITH A LOT OF CALIFORNIANS. THIS MEASURE IS EXPECTED TO BE BIPARTISAN WITH SOME REPUBLICAN SUPPORT I’M HEARING AS OF RIGHT NOW.
California leaders to ask voters to improve state’s ability to save money
Updated: 6:48 PM PDT Jun 24, 2026
California lawmakers and Gov. Gavin Newsom are proposing a ballot measure to expand the state’s rainy-day fund to ramp up reserves and address outstanding debts, an issue that’s expected to head to voters in November. The Save for California’s Future Act would change the California constitution to increase the maximum amount of money allowed under state law to be the state’s rainy-day fund from 10% of the general fund to 20%. It would also require larger mandatory deposits into reserves. The measure would also update the list of eligible debt repayments that can be made using the fund. The updated list includes public school debt, budget debt and the more than $20 billion the state owes to the federal government for COVID-19 unemployment benefits. “I have a great deal of confidence it’s going to resonate with voters because it resonates with common sense lived experience,” said Assemblyman Jesse Gabriel, D-Encino, who is the chairman of the Assembly’s budget committee. “You should put money away during good times to prepare for a rainy day. I’m quite optimistic that there’s going to be a strong campaign here, but I think this idea is going to resonate deeply with a lot of Californians.” State leaders will debate and vote on whether to place the measure on the ballot Thursday.See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel
California lawmakers and Gov. Gavin Newsom are proposing a ballot measure to expand the state’s rainy-day fund to ramp up reserves and address outstanding debts, an issue that’s expected to head to voters in November.
The Save for California’s Future Act would change the California constitution to increase the maximum amount of money allowed under state law to be the state’s rainy-day fund from 10% of the general fund to 20%. It would also require larger mandatory deposits into reserves. The measure would also update the list of eligible debt repayments that can be made using the fund.
The updated list includes public school debt, budget debt and the more than $20 billion the state owes to the federal government for COVID-19 unemployment benefits.
“I have a great deal of confidence it’s going to resonate with voters because it resonates with common sense lived experience,” said Assemblyman Jesse Gabriel, D-Encino, who is the chairman of the Assembly’s budget committee. “You should put money away during good times to prepare for a rainy day. I’m quite optimistic that there’s going to be a strong campaign here, but I think this idea is going to resonate deeply with a lot of Californians.”
State leaders will debate and vote on whether to place the measure on the ballot Thursday.
See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel