Should California save more for a rainy day? One state legislator wants voters to decide

The ACA 1 amendment seeks to transform California's rainy day fund by raising the annual contribution from 1.5% to a yet-to-be-specified higher percentage, enhancing fiscal preparedness.

Valencia emphasized the importance of governments being fiscally responsible, stating, 'When we do have the ability to save more, we should be able to, like any responsible individual would or family does...'

By doubling the cap on the rainy day fund from 10% to 20%, California can significantly increase its savings, preparing better for economic downturns and unexpected emergencies.

The proposal is still developing, with plans to qualify for the 2026 ballot, reflecting a long-term commitment to improving California's financial health and budgeting strategies.

Read at www.ocregister.com