A resolution to propose to the people of the State of California an amendment to the Constitution of the State, by amending Section 9 of Article II thereof, by amending Sections 8 and 12 of Article IV thereof, and by amending Section 3 of Article XIIIA thereof, relating to the state budget.

(1) The California Constitution requires each house of the Legislature to pass a bill appropriating moneys from the General Fund, except appropriations for the public schools, by a 23 vote. The California Constitution generally limits the amount of total amount appropriations of the state for a year to the total amount of appropriations for the prior year after adjusted for the change in the cost of living and population. The California Constitution requires that a change in state taxes for purposes of increasing revenue either by increasing the rate of the state tax or a change in the method of computation of the state tax be passed by a 23 vote. This measure would provide that if the total amount of General Fund appropriations in a Budget Bill, as defined, for the fiscal year, when combined with all appropriations from the General Fund for that fiscal year made by statutes enacted as of the date of the Budget Bill's passage, does not exceed the lesser of the appropriation limit for that fiscal year or 105% of General Fund appropriations made by statutes enacted as of that date for the immediately preceding fiscal year, the Budget Bill is exempt from the 23-vote requirement that otherwise applies to General Fund appropriations. This measure would also exempt, from the 23-vote requirement that applies to certain changes in state taxes, a change in a state tax for the purpose of generating General Fund revenue contained in a bill identified in the Budget Bill as necessary to implement the Budget Bill, if the Budget Bill qualifies to be exempted from the 23-vote provisions and the change in state tax, when combined with all other changes in state taxes contained in budget implementation bills for that Budget Bill, does not exceed the difference between the total amount of General Fund appropriations made in the Budget Bill, when combined with all appropriations from the statutes enacted as of the date of the Budget Bill's passage, and the maximum General Fund appropriation amount discussed above. (2) The California Constitution provides that a statute takes effect immediately upon enactment if the statute calls for an election, provides for a tax levy, makes an appropriation for the usual and current expenses of the state, or is an urgency statute. The California Constitution exempts these statutes from the power of referendum, which is the power of the electors to approve or reject statutes or parts of statutes. This measure would add, to those statutes that take effect immediately and are exempt from referendum, statutes enacting the Budget Bill and statutes enacting bills identified in the Budget Bill as necessary to implement the Budget Bill.