A resolution to propose to the people of the State of California an amendment to the Constitution of the State, by amending Section 20 of Article XVI of the California Constitution, relating to public finance.

The California Constitution establishes the Budget Stabilization Account (BSA) and requires, for every fiscal year and based on the Budget Act for that fiscal year, the Controller to transfer from the General Fund to the BSA, no later than October 1, a sum equal to 1.5% of the estimated amount of General Fund revenues for that fiscal year. The California Constitution, based on the estimates provided by the Department of Finance, requires the Controller, by October 1 of the 2015–16 fiscal year and each fiscal year thereafter to the 2029–30 fiscal year, inclusive, to transfer amounts from the General Fund and the BSA pursuant to a specified schedule. That schedule requires 12 of the 1.5% of estimated General Fund revenues and certain state personal income tax revenues to be deposited into the BSA and the other 12 of those same revenues to be appropriated by the Legislature for one or more of certain obligations or purposes. This measure would, commencing with the fiscal year following the effective date of the measure, and for every fiscal year thereafter to the 2029–30 fiscal year, inclusive, include, in those obligations or purposes, payments towards the principal balance of debt owed to the federal government for moneys borrowed by the state to support the state's unemployment insurance programs, as described. The measure would further require, in any fiscal year the unemployment insurance debt is not paid, the Legislature to include an appropriation for that debt repayment and ensure that the appropriation for that debt receives the greatest percentage of appropriated moneys compared to any other obligation or purpose funded by the Legislature under the above-described provisions. The California Constitution alters, commencing with the 2030–31 fiscal year, the above-described transfer requirements applicable through the 2029–30 fiscal year to instead require that the full amount of these revenues be transferred to the BSA and to authorize, rather than require, the Legislature to appropriate up to 12 of these revenues for one or more of the same obligations or purposes. This measure would modify, commencing with the 2030–31 fiscal year and each fiscal year thereafter, the parameters applicable to the authorized appropriation for the obligations or purposes to require that any appropriation made by the Legislature for those obligations or purposes to comply with the above-described changes made by the measure relating to required payments towards the principal balance of debt owed to the federal government for moneys borrowed by the state to support the state's unemployment insurance programs, as described.