Tuesday, April 29, 2014
Saving for a Rainy Day
One thing about rainy day funds with complicated formulas that are supposed to lock up money. They leak. It is doubtful, however, that UC would be the recipient of the leakage. But we are unlikely to avoid having one of the two rainy day funds on the ballot since, if the legislative does nothing, the original one will appear. Probably, the best outcome would be that one of the two appears in November and is defeated. But the more likely outcome is that the governor's proposal will appear (enough Republicans seem favorably inclined to his version to get it on the ballot) and then - because saving for a rainy day is such an appealing idea - it is approved by voters.
You can read the Leg Analyst's report at http://www.lao.ca.gov/handouts/state_admin/2014/Budget-Reserve-Proposals-042814.pdf
And let's hope it doesn't rain anytime soon in the budgetary sense: