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State of California November 4, 2014 Election
Proposition 2
State Budget. Budget Stabilization Account
State of California

Legislative Consitutional Amendment - Majority Approval Required

Pass: 4,831,045 / 69.1% Yes votes ...... 2,158,004 / 30.9% No votes

See Also: Index of all Propositions

Results as of Dec 14 10:50am, 100.0% of Precincts Reporting (24435/24435)
Information shown below: Summary | Fiscal Impact | Yes/No Meaning | Official Information | Arguments |

Should the State Constitution be amended to change how the state pays down debt and saves money in reserves?

Summary Prepared by the State Attorney General:

  • Requires annual transfer of 1.5% of general fund revenues to state budget stabilization account.
  • Requires additional transfer of personal capital gains tax revenues exceeding 8% of general fund revenues to budget stabilization account and, under certain conditions, a dedicated K+14 school reserve fund.
  • Requires that half the budget stabilization account revenues be used to repay state debts and unfunded liabilities.
  • Allows limited use of funds in case of emergency or if there is a state budget deficit.
  • Caps budget stabilization account at 10% of general fund revenues, directs remainder to infrastructure.

Fiscal Impact from the Legislative Analyst:

  • Long-term state savings from faster payment of existing debts.
  • Different levels of state budget reserves, depending on economy and decisions by elected officials.
  • Smaller local reserves for some school districts.

Meaning of Voting Yes/No
A YES vote on this measure means:
Existing state debts likely would be paid faster. There would be new rules for state budget reserves. Local school district budget reserves would be capped in some years.

A NO vote on this measure means:
Rules for payment of state debts, state budget reserves, and local school district reserves would not change.

Official Sources of Information
Arguments Submitted

Summary of Arguments FOR Proposition 2:
Proposition 2 establishes a STRONG RAINY DAY FUND in the State Constitution that will force the Legislature and Governor to save money and pay down debts, which will shield TAXPAYERS from UNNECESSARY TAX INCREASES and PROTECT SCHOOLS from devastating cuts. BOTH Democrats and Republicans SUPPORT Proposition 2.

Summary of Arguments AGAINST Proposition 2:
Vote NO on 2 to PROTECT SCHOOLS. Proposition 2 hides a DANGEROUS financial time bomb that will LIMIT districts' ability to save. Proposition 2 helps to keep California ranked 50th in the nation in per pupil spending. Don't trust Sacramento. Get facts from parents, not politicians at
Contact FOR Proposition 2:
Tom Willis
Yes on Proposition 2
2355 Broadway #407
Oakland, CA 94612
(510) 210-5001

Contact AGAINST Proposition 2:
Educate Our State
6114 La Salle Avenue, #441
Oakland, CA 94610
(510) 500-5147

  Official Information

Secretary of State

Campaign Finance Data


  • Funding Summary for Prop 2 - the most complete information: everything on this page plus funding, news articles, endorsements, ads. From MapLight and the Smart Voter team of LWV California Education Fund
  • Cal-Access - Details of committee campaign finance filings submitted to the Secretary of State.
Nonpartisan Information

League of Women Voters


Pros & Cons: Santa Clara County

Pros & Cons: Alameda County
  • Oct. 27, 7:00 to 9:00 pm, Fremont Main Library, 2400 Stevenson Blvd., Fremont
News and Analysis

KQED Public Radio

KQED News Election Watch
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