| 1 | 1 | | CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Constitutional Amendment No. 19Introduced by Assembly Member GallagherFebruary 16, 2024 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. LEGISLATIVE COUNSEL'S DIGESTACA 19, as introduced, Gallagher. State finance: budget: unemployment insurance debt repayment.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 201516 fiscal year and each fiscal year thereafter to the 202930 fiscal year, inclusive, to transfer amounts from the General Fund and the BSA pursuant to a specified schedule. That schedule requires 1/2 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 1/2 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 202930 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 states 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 203031 fiscal year, the above-described transfer requirements applicable through the 202930 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 1/2 of these revenues for one or more of the same obligations or purposes.This measure would modify, commencing with the 203031 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 states unemployment insurance programs, as described.Digest Key Vote: 2/3 Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextResolved by the Assembly, the Senate concurring, That the Legislature of the State of California at its 202324 Regular Session commencing on the fifth day of December 2022, two-thirds of the membership of each house concurring, hereby proposes to the people of the State of California, that the Constitution of the State be amended as follows:First The Legislature finds and declares that the intent of this measure is to repay outstanding federal unemployment insurance loan debt in order to protect the state and California businesses from the negative effects of COVID-19 and any future economic downturn.Second That Section 20 of Article XVI thereof is amended to read:SEC. 20. (a) (1) The Budget Stabilization Account is hereby created in the General Fund.(2) For the 201516 fiscal year and each fiscal year thereafter, based on the Budget Act for the fiscal year, the Controller shall transfer from the General Fund to the Budget Stabilization Account, no later than October 1, a sum equal to 1.5 percent of the estimated amount of General Fund revenues for that fiscal year.(b) (1) For the 201516 fiscal year and each fiscal year thereafter, based on the Budget Act for the fiscal year, the Department of Finance shall provide to the Legislature all of the following information:(A) An estimate of the amount of General Fund proceeds of taxes that may be appropriated pursuant to Article XIIIB for that fiscal year.(B) (i) An estimate of that portion of the General Fund proceeds of taxes identified in subparagraph (A) that is derived from personal income taxes paid on net capital gains.(ii) The portion of the estimate in clause (i) that exceeds 8 percent of the estimate made under subparagraph (A).(C) That portion of the states funding obligation under Section 8 that results from including the amount calculated under clause (ii) of subparagraph (B), if any, as General Fund proceeds of taxes.(D) The amount of any appropriations described in clause (ii) of subparagraph (B) of paragraph (1) of, or subparagraph (C) of paragraph (2) of, subdivision (c), that are made from the revenues described in clause (ii) of subparagraph (B) of this paragraph.(E) The amount resulting from subtracting the combined values calculated under subparagraphs (C) and (D) from the value calculated under clause (ii) of subparagraph (B). If less than zero, the amount shall be considered zero for this purpose.(F) The lesser of the amount calculated under subparagraph (E) or the amount of transfer resulting in the balance in the Budget Stabilization Account reaching the limit specified in subdivision (e).(2) In the 201617 fiscal year, with respect to the 201516 fiscal year only, and in the 201718 fiscal year and each fiscal year thereafter, separately with respect to each of the two next preceding fiscal years, the Department of Finance shall calculate all of the following, using the same methodology used for the relevant fiscal year, and provide those calculations to the Legislature:(A) An updated estimate of the amount of General Fund proceeds of taxes that may be appropriated pursuant to Article XIIIB.(B) (i) An updated estimate of that portion of the General Fund proceeds of taxes identified in subparagraph (A) that is derived from personal income taxes paid on net capital gains.(ii) That portion of the updated estimate in clause (i) that exceeds 8 percent of the updated estimate made under subparagraph (A).(C) The updated calculation of that portion of the states funding obligation under Section 8 that results from including the updated amount calculated under clause (ii) of subparagraph (B), if any, as General Fund proceeds of taxes.(D) The amount of any appropriations described in clause (ii) of subparagraph (B) of paragraph (1) of, or subparagraph (C) of paragraph (2) of, subdivision (c), that are made from the revenues described in clause (ii) of subparagraph (B) of paragraph (1).(E) The amount resulting from subtracting the combined values calculated under subparagraphs (C) and (D) from the value calculated under clause (ii) of subparagraph (B). If less than zero, the amount shall be considered zero for this purpose.(F) The amount previously transferred for the fiscal year by the Controller from the General Fund to the Budget Stabilization Account pursuant to subdivisions (c) and (d).(G) The lesser of (i) the amount, not less than zero, resulting from subtracting, from the amount calculated under subparagraph (E), the value of any suspension or reduction of transfer pursuant to paragraph (1) of subdivision (a) of Section 22 previously approved by the Legislature for the relevant fiscal year, and the amount previously transferred for that fiscal year by the Controller as described in subparagraph (F), or (ii) the amount of transfer resulting in the balance in the Budget Stabilization Account reaching the limit as specified in subdivision (e).(c) (1) (A) By October 1 of the 201516 fiscal year and each fiscal year thereafter to the 202930 fiscal year, inclusive, based on the estimates set forth in the annual Budget Act pursuant to paragraphs (2) and (3) of subdivision (h), and the sum identified in paragraph (2) of subdivision (a), the Controller shall transfer amounts from the General Fund and the Budget Stabilization Account, pursuant to a schedule provided by the Director of Finance, as provided in subparagraph (B).(B) Notwithstanding any other provision of this section, in the fiscal year to which the Budget Act identified in subparagraph (A) applies:(i) Fifty percent of both the amount identified in paragraph (2) of subdivision (a), and the amount resulting from subtracting the value calculated under subparagraph (C) of paragraph (1) of subdivision (b) from the value calculated under clause (ii) of subparagraph (B) of paragraph (1) of subdivision (b), shall be transferred from the General Fund to the Budget Stabilization Account.(ii) The (I) Subject to subclause (II), the remaining 50 percent shall be appropriated by the Legislature for one or more of the following obligations and purposes:(I)(ia) Unfunded prior fiscal year General Fund obligations pursuant to Section 8 that existed on July 1, 2014.(II)(ib) Budgetary loans to the General Fund, from funds outside the General Fund, that had outstanding balances on January 1, 2014.(III)(ic) Payable claims for mandated costs incurred prior to the 200405 fiscal year that have not yet been paid, and that pursuant to paragraph (2) of subdivision (b) of Section 6 of Article XIIIB are permitted to be paid over a term of years, as prescribed by law.(IV)(id) Unfunded liabilities for state-level pension plans and prefunding other postemployment benefits, in excess of current base amounts as established for the fiscal year in which the funds would otherwise be transferred to the Budget Stabilization Account. For the purpose of this subclause, current base amounts are those required to be paid pursuant to law, an approved memorandum of understanding, benefit schedules established by the employer or entity authorized to establish those contributions for employees excluded or exempted from collective bargaining, or any combination of these. To qualify under this subclause, the appropriation shall supplement and not supplant funding that would otherwise be made available to pay for the obligations described in this subclause for the fiscal year or the subsequent fiscal year.(ie) Payments towards the principal balance of debt owed to the federal government for moneys borrowed to support the states unemployment insurance programs under Division 1 (commencing with Section 100) of the Unemployment Insurance Code.(II) In any fiscal year the debt described in sub-subclause (ie) of subclause (I) is not repaid, the Legislature shall include in its appropriation made pursuant to this clause an appropriation for that debt repayment. If more than one obligation or purpose described in subclause (I) is funded under this clause, the greatest percentage of moneys appropriated pursuant to this clause shall be for the debt repayment described in sub-subclause (ie) of subclause (I).(III) The amendments made by the measure adding this subclause shall be operative commencing with the fiscal year following the effective date of this measure, and for every fiscal year thereafter to the 202930 fiscal year, inclusive.(2) (A) By October 1 of the 203031 fiscal year and each fiscal year thereafter, based on the estimates set forth in the annual Budget Act pursuant to paragraphs (2) and (3) of subdivision (h), the Controller shall transfer amounts from the General Fund to the Budget Stabilization Account, pursuant to a schedule provided by the Director of Finance, as provided in subparagraph (B).(B) In the fiscal year to which the Budget Act identified in subparagraph (A) applies, both the amount identified in paragraph (2) of subdivision (a), and the amount resulting from subtracting the value calculated under subparagraph (C) of paragraph (1) of subdivision (b) from the value calculated under clause (ii) of subparagraph (B) of paragraph (1) of subdivision (b), shall be transferred from the General Fund to the Budget Stabilization Account.(C) Notwithstanding any other provision of this section, the Legislature may appropriate up to 50 percent of both the amount identified in paragraph (2) of subdivision (a), and of the amount resulting from subtracting the value calculated under subparagraph (C) of paragraph (1) of subdivision (b) from the value calculated under clause (ii) of subparagraph (B) of paragraph (1) of subdivision (b), for one or more of the obligations and purposes described in subclause (I) of clause (ii) of subparagraph (B) of paragraph (1). Any appropriation made by the Legislature pursuant to this subparagraph for the obligations and purposes described in subclause (I) of clause (ii) of subparagraph (B) of paragraph (1) shall comply with the requirements specified in subclause (II) of clause (ii) of subparagraph (B) of paragraph (1).(3) The transfers described in this subdivision are subject to suspension or reduction pursuant to paragraph (1) of subdivision (a) of Section 22.(d) By October 1 of the 201617 fiscal year and each fiscal year thereafter, based on the estimates set forth in the annual Budget Act pursuant to paragraphs (4) and (5) of subdivision (h), the Controller shall transfer amounts between the General Fund and the Budget Stabilization Account pursuant to a schedule provided by the Director of Finance, as follows:(1) If the amount in subparagraph (G) of paragraph (2) of subdivision (b) is greater than zero, transfer that amount from the General Fund to the Budget Stabilization Account, subject to any suspension or reduction of this transfer pursuant to paragraph (1) of subdivision (a) of Section 22.(2) If the amount described in subparagraph (F) of paragraph (2) of subdivision (b) is greater than the amount calculated under subparagraph (E) of paragraph (2) of subdivision (b), transfer that excess amount from the Budget Stabilization Account back to the General Fund.(e) Notwithstanding any other provision of this section, the amount of a transfer to the Budget Stabilization Account pursuant to paragraph (2) of subdivision (a) and subdivisions (c) and (d) for any fiscal year shall not exceed an amount that would result in a balance in the account that, when the transfer is made, exceeds 10 percent of the amount of General Fund proceeds of taxes for the fiscal year estimated pursuant to subdivision (b). For any fiscal year, General Fund proceeds of taxes that, but for this paragraph, would have been transferred to the Budget Stabilization Account may be expended only for infrastructure, as defined by Section 13101 of the Government Code, as that section read on January 1, 2014, including deferred maintenance thereon.(f) The funds described in subdivision (b) as General Fund proceeds of taxes are General Fund proceeds of taxes for purposes of Section 8 for the fiscal year to which those proceeds are attributed, but are not deemed to be additional General Fund proceeds of taxes on the basis that the funds are thereafter transferred from the Budget Stabilization Account to the General Fund.(g) The Controller may utilize funds in the Budget Stabilization Account, that he or she determines to currently be unnecessary for the purposes of this section, to help manage General Fund daily cashflow needs. Any use pursuant to this subdivision shall not interfere with the purposes of the Budget Stabilization Account.(h) The annual Budget Act shall include the estimates described in all of the following:(1) Paragraph (2) of subdivision (a).(2) Clause (ii) of subparagraph (B) of paragraph (1) of subdivision (b).(3) Subparagraph (F) of paragraph (1) of subdivision (b).(4) Clause (ii) of subparagraph (B) of paragraph (2) of subdivision (b).(5) Subparagraph (G) of paragraph (2) of subdivision (b). |
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| 3 | 3 | | CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Constitutional Amendment No. 19Introduced by Assembly Member GallagherFebruary 16, 2024 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. LEGISLATIVE COUNSEL'S DIGESTACA 19, as introduced, Gallagher. State finance: budget: unemployment insurance debt repayment.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 201516 fiscal year and each fiscal year thereafter to the 202930 fiscal year, inclusive, to transfer amounts from the General Fund and the BSA pursuant to a specified schedule. That schedule requires 1/2 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 1/2 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 202930 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 states 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 203031 fiscal year, the above-described transfer requirements applicable through the 202930 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 1/2 of these revenues for one or more of the same obligations or purposes.This measure would modify, commencing with the 203031 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 states unemployment insurance programs, as described.Digest Key Vote: 2/3 Appropriation: NO Fiscal Committee: YES Local Program: NO |
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| 9 | 9 | | CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION |
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| 11 | 11 | | Assembly Constitutional Amendment |
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| 13 | 13 | | No. 19 |
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| 15 | 15 | | Introduced by Assembly Member GallagherFebruary 16, 2024 |
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| 17 | 17 | | Introduced by Assembly Member Gallagher |
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| 18 | 18 | | February 16, 2024 |
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| 20 | 20 | | 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. |
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| 22 | 22 | | LEGISLATIVE COUNSEL'S DIGEST |
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| 24 | 24 | | ## LEGISLATIVE COUNSEL'S DIGEST |
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| 26 | 26 | | ACA 19, as introduced, Gallagher. State finance: budget: unemployment insurance debt repayment. |
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| 28 | 28 | | 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 201516 fiscal year and each fiscal year thereafter to the 202930 fiscal year, inclusive, to transfer amounts from the General Fund and the BSA pursuant to a specified schedule. That schedule requires 1/2 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 1/2 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 202930 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 states 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 203031 fiscal year, the above-described transfer requirements applicable through the 202930 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 1/2 of these revenues for one or more of the same obligations or purposes.This measure would modify, commencing with the 203031 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 states unemployment insurance programs, as described. |
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| 30 | 30 | | 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 201516 fiscal year and each fiscal year thereafter to the 202930 fiscal year, inclusive, to transfer amounts from the General Fund and the BSA pursuant to a specified schedule. That schedule requires 1/2 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 1/2 of those same revenues to be appropriated by the Legislature for one or more of certain obligations or purposes. |
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| 32 | 32 | | This measure would, commencing with the fiscal year following the effective date of the measure, and for every fiscal year thereafter to the 202930 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 states 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. |
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| 34 | 34 | | The California Constitution alters, commencing with the 203031 fiscal year, the above-described transfer requirements applicable through the 202930 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 1/2 of these revenues for one or more of the same obligations or purposes. |
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| 36 | 36 | | This measure would modify, commencing with the 203031 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 states unemployment insurance programs, as described. |
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| 38 | 38 | | ## Digest Key |
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| 40 | 40 | | ## Bill Text |
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| 42 | 42 | | Resolved by the Assembly, the Senate concurring, That the Legislature of the State of California at its 202324 Regular Session commencing on the fifth day of December 2022, two-thirds of the membership of each house concurring, hereby proposes to the people of the State of California, that the Constitution of the State be amended as follows: |
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| 44 | 44 | | First The Legislature finds and declares that the intent of this measure is to repay outstanding federal unemployment insurance loan debt in order to protect the state and California businesses from the negative effects of COVID-19 and any future economic downturn. |
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| 46 | 46 | | First The Legislature finds and declares that the intent of this measure is to repay outstanding federal unemployment insurance loan debt in order to protect the state and California businesses from the negative effects of COVID-19 and any future economic downturn. |
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| 48 | 48 | | First The Legislature finds and declares that the intent of this measure is to repay outstanding federal unemployment insurance loan debt in order to protect the state and California businesses from the negative effects of COVID-19 and any future economic downturn. |
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| 50 | 50 | | ### First |
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| 52 | 52 | | Second That Section 20 of Article XVI thereof is amended to read:SEC. 20. (a) (1) The Budget Stabilization Account is hereby created in the General Fund.(2) For the 201516 fiscal year and each fiscal year thereafter, based on the Budget Act for the fiscal year, the Controller shall transfer from the General Fund to the Budget Stabilization Account, no later than October 1, a sum equal to 1.5 percent of the estimated amount of General Fund revenues for that fiscal year.(b) (1) For the 201516 fiscal year and each fiscal year thereafter, based on the Budget Act for the fiscal year, the Department of Finance shall provide to the Legislature all of the following information:(A) An estimate of the amount of General Fund proceeds of taxes that may be appropriated pursuant to Article XIIIB for that fiscal year.(B) (i) An estimate of that portion of the General Fund proceeds of taxes identified in subparagraph (A) that is derived from personal income taxes paid on net capital gains.(ii) The portion of the estimate in clause (i) that exceeds 8 percent of the estimate made under subparagraph (A).(C) That portion of the states funding obligation under Section 8 that results from including the amount calculated under clause (ii) of subparagraph (B), if any, as General Fund proceeds of taxes.(D) The amount of any appropriations described in clause (ii) of subparagraph (B) of paragraph (1) of, or subparagraph (C) of paragraph (2) of, subdivision (c), that are made from the revenues described in clause (ii) of subparagraph (B) of this paragraph.(E) The amount resulting from subtracting the combined values calculated under subparagraphs (C) and (D) from the value calculated under clause (ii) of subparagraph (B). If less than zero, the amount shall be considered zero for this purpose.(F) The lesser of the amount calculated under subparagraph (E) or the amount of transfer resulting in the balance in the Budget Stabilization Account reaching the limit specified in subdivision (e).(2) In the 201617 fiscal year, with respect to the 201516 fiscal year only, and in the 201718 fiscal year and each fiscal year thereafter, separately with respect to each of the two next preceding fiscal years, the Department of Finance shall calculate all of the following, using the same methodology used for the relevant fiscal year, and provide those calculations to the Legislature:(A) An updated estimate of the amount of General Fund proceeds of taxes that may be appropriated pursuant to Article XIIIB.(B) (i) An updated estimate of that portion of the General Fund proceeds of taxes identified in subparagraph (A) that is derived from personal income taxes paid on net capital gains.(ii) That portion of the updated estimate in clause (i) that exceeds 8 percent of the updated estimate made under subparagraph (A).(C) The updated calculation of that portion of the states funding obligation under Section 8 that results from including the updated amount calculated under clause (ii) of subparagraph (B), if any, as General Fund proceeds of taxes.(D) The amount of any appropriations described in clause (ii) of subparagraph (B) of paragraph (1) of, or subparagraph (C) of paragraph (2) of, subdivision (c), that are made from the revenues described in clause (ii) of subparagraph (B) of paragraph (1).(E) The amount resulting from subtracting the combined values calculated under subparagraphs (C) and (D) from the value calculated under clause (ii) of subparagraph (B). If less than zero, the amount shall be considered zero for this purpose.(F) The amount previously transferred for the fiscal year by the Controller from the General Fund to the Budget Stabilization Account pursuant to subdivisions (c) and (d).(G) The lesser of (i) the amount, not less than zero, resulting from subtracting, from the amount calculated under subparagraph (E), the value of any suspension or reduction of transfer pursuant to paragraph (1) of subdivision (a) of Section 22 previously approved by the Legislature for the relevant fiscal year, and the amount previously transferred for that fiscal year by the Controller as described in subparagraph (F), or (ii) the amount of transfer resulting in the balance in the Budget Stabilization Account reaching the limit as specified in subdivision (e).(c) (1) (A) By October 1 of the 201516 fiscal year and each fiscal year thereafter to the 202930 fiscal year, inclusive, based on the estimates set forth in the annual Budget Act pursuant to paragraphs (2) and (3) of subdivision (h), and the sum identified in paragraph (2) of subdivision (a), the Controller shall transfer amounts from the General Fund and the Budget Stabilization Account, pursuant to a schedule provided by the Director of Finance, as provided in subparagraph (B).(B) Notwithstanding any other provision of this section, in the fiscal year to which the Budget Act identified in subparagraph (A) applies:(i) Fifty percent of both the amount identified in paragraph (2) of subdivision (a), and the amount resulting from subtracting the value calculated under subparagraph (C) of paragraph (1) of subdivision (b) from the value calculated under clause (ii) of subparagraph (B) of paragraph (1) of subdivision (b), shall be transferred from the General Fund to the Budget Stabilization Account.(ii) The (I) Subject to subclause (II), the remaining 50 percent shall be appropriated by the Legislature for one or more of the following obligations and purposes:(I)(ia) Unfunded prior fiscal year General Fund obligations pursuant to Section 8 that existed on July 1, 2014.(II)(ib) Budgetary loans to the General Fund, from funds outside the General Fund, that had outstanding balances on January 1, 2014.(III)(ic) Payable claims for mandated costs incurred prior to the 200405 fiscal year that have not yet been paid, and that pursuant to paragraph (2) of subdivision (b) of Section 6 of Article XIIIB are permitted to be paid over a term of years, as prescribed by law.(IV)(id) Unfunded liabilities for state-level pension plans and prefunding other postemployment benefits, in excess of current base amounts as established for the fiscal year in which the funds would otherwise be transferred to the Budget Stabilization Account. For the purpose of this subclause, current base amounts are those required to be paid pursuant to law, an approved memorandum of understanding, benefit schedules established by the employer or entity authorized to establish those contributions for employees excluded or exempted from collective bargaining, or any combination of these. To qualify under this subclause, the appropriation shall supplement and not supplant funding that would otherwise be made available to pay for the obligations described in this subclause for the fiscal year or the subsequent fiscal year.(ie) Payments towards the principal balance of debt owed to the federal government for moneys borrowed to support the states unemployment insurance programs under Division 1 (commencing with Section 100) of the Unemployment Insurance Code.(II) In any fiscal year the debt described in sub-subclause (ie) of subclause (I) is not repaid, the Legislature shall include in its appropriation made pursuant to this clause an appropriation for that debt repayment. If more than one obligation or purpose described in subclause (I) is funded under this clause, the greatest percentage of moneys appropriated pursuant to this clause shall be for the debt repayment described in sub-subclause (ie) of subclause (I).(III) The amendments made by the measure adding this subclause shall be operative commencing with the fiscal year following the effective date of this measure, and for every fiscal year thereafter to the 202930 fiscal year, inclusive.(2) (A) By October 1 of the 203031 fiscal year and each fiscal year thereafter, based on the estimates set forth in the annual Budget Act pursuant to paragraphs (2) and (3) of subdivision (h), the Controller shall transfer amounts from the General Fund to the Budget Stabilization Account, pursuant to a schedule provided by the Director of Finance, as provided in subparagraph (B).(B) In the fiscal year to which the Budget Act identified in subparagraph (A) applies, both the amount identified in paragraph (2) of subdivision (a), and the amount resulting from subtracting the value calculated under subparagraph (C) of paragraph (1) of subdivision (b) from the value calculated under clause (ii) of subparagraph (B) of paragraph (1) of subdivision (b), shall be transferred from the General Fund to the Budget Stabilization Account.(C) Notwithstanding any other provision of this section, the Legislature may appropriate up to 50 percent of both the amount identified in paragraph (2) of subdivision (a), and of the amount resulting from subtracting the value calculated under subparagraph (C) of paragraph (1) of subdivision (b) from the value calculated under clause (ii) of subparagraph (B) of paragraph (1) of subdivision (b), for one or more of the obligations and purposes described in subclause (I) of clause (ii) of subparagraph (B) of paragraph (1). Any appropriation made by the Legislature pursuant to this subparagraph for the obligations and purposes described in subclause (I) of clause (ii) of subparagraph (B) of paragraph (1) shall comply with the requirements specified in subclause (II) of clause (ii) of subparagraph (B) of paragraph (1).(3) The transfers described in this subdivision are subject to suspension or reduction pursuant to paragraph (1) of subdivision (a) of Section 22.(d) By October 1 of the 201617 fiscal year and each fiscal year thereafter, based on the estimates set forth in the annual Budget Act pursuant to paragraphs (4) and (5) of subdivision (h), the Controller shall transfer amounts between the General Fund and the Budget Stabilization Account pursuant to a schedule provided by the Director of Finance, as follows:(1) If the amount in subparagraph (G) of paragraph (2) of subdivision (b) is greater than zero, transfer that amount from the General Fund to the Budget Stabilization Account, subject to any suspension or reduction of this transfer pursuant to paragraph (1) of subdivision (a) of Section 22.(2) If the amount described in subparagraph (F) of paragraph (2) of subdivision (b) is greater than the amount calculated under subparagraph (E) of paragraph (2) of subdivision (b), transfer that excess amount from the Budget Stabilization Account back to the General Fund.(e) Notwithstanding any other provision of this section, the amount of a transfer to the Budget Stabilization Account pursuant to paragraph (2) of subdivision (a) and subdivisions (c) and (d) for any fiscal year shall not exceed an amount that would result in a balance in the account that, when the transfer is made, exceeds 10 percent of the amount of General Fund proceeds of taxes for the fiscal year estimated pursuant to subdivision (b). For any fiscal year, General Fund proceeds of taxes that, but for this paragraph, would have been transferred to the Budget Stabilization Account may be expended only for infrastructure, as defined by Section 13101 of the Government Code, as that section read on January 1, 2014, including deferred maintenance thereon.(f) The funds described in subdivision (b) as General Fund proceeds of taxes are General Fund proceeds of taxes for purposes of Section 8 for the fiscal year to which those proceeds are attributed, but are not deemed to be additional General Fund proceeds of taxes on the basis that the funds are thereafter transferred from the Budget Stabilization Account to the General Fund.(g) The Controller may utilize funds in the Budget Stabilization Account, that he or she determines to currently be unnecessary for the purposes of this section, to help manage General Fund daily cashflow needs. Any use pursuant to this subdivision shall not interfere with the purposes of the Budget Stabilization Account.(h) The annual Budget Act shall include the estimates described in all of the following:(1) Paragraph (2) of subdivision (a).(2) Clause (ii) of subparagraph (B) of paragraph (1) of subdivision (b).(3) Subparagraph (F) of paragraph (1) of subdivision (b).(4) Clause (ii) of subparagraph (B) of paragraph (2) of subdivision (b).(5) Subparagraph (G) of paragraph (2) of subdivision (b). |
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| 53 | 53 | | |
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| 54 | 54 | | Second That Section 20 of Article XVI thereof is amended to read: |
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| 55 | 55 | | |
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| 56 | 56 | | ### Second |
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| 57 | 57 | | |
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| 58 | 58 | | SEC. 20. (a) (1) The Budget Stabilization Account is hereby created in the General Fund.(2) For the 201516 fiscal year and each fiscal year thereafter, based on the Budget Act for the fiscal year, the Controller shall transfer from the General Fund to the Budget Stabilization Account, no later than October 1, a sum equal to 1.5 percent of the estimated amount of General Fund revenues for that fiscal year.(b) (1) For the 201516 fiscal year and each fiscal year thereafter, based on the Budget Act for the fiscal year, the Department of Finance shall provide to the Legislature all of the following information:(A) An estimate of the amount of General Fund proceeds of taxes that may be appropriated pursuant to Article XIIIB for that fiscal year.(B) (i) An estimate of that portion of the General Fund proceeds of taxes identified in subparagraph (A) that is derived from personal income taxes paid on net capital gains.(ii) The portion of the estimate in clause (i) that exceeds 8 percent of the estimate made under subparagraph (A).(C) That portion of the states funding obligation under Section 8 that results from including the amount calculated under clause (ii) of subparagraph (B), if any, as General Fund proceeds of taxes.(D) The amount of any appropriations described in clause (ii) of subparagraph (B) of paragraph (1) of, or subparagraph (C) of paragraph (2) of, subdivision (c), that are made from the revenues described in clause (ii) of subparagraph (B) of this paragraph.(E) The amount resulting from subtracting the combined values calculated under subparagraphs (C) and (D) from the value calculated under clause (ii) of subparagraph (B). If less than zero, the amount shall be considered zero for this purpose.(F) The lesser of the amount calculated under subparagraph (E) or the amount of transfer resulting in the balance in the Budget Stabilization Account reaching the limit specified in subdivision (e).(2) In the 201617 fiscal year, with respect to the 201516 fiscal year only, and in the 201718 fiscal year and each fiscal year thereafter, separately with respect to each of the two next preceding fiscal years, the Department of Finance shall calculate all of the following, using the same methodology used for the relevant fiscal year, and provide those calculations to the Legislature:(A) An updated estimate of the amount of General Fund proceeds of taxes that may be appropriated pursuant to Article XIIIB.(B) (i) An updated estimate of that portion of the General Fund proceeds of taxes identified in subparagraph (A) that is derived from personal income taxes paid on net capital gains.(ii) That portion of the updated estimate in clause (i) that exceeds 8 percent of the updated estimate made under subparagraph (A).(C) The updated calculation of that portion of the states funding obligation under Section 8 that results from including the updated amount calculated under clause (ii) of subparagraph (B), if any, as General Fund proceeds of taxes.(D) The amount of any appropriations described in clause (ii) of subparagraph (B) of paragraph (1) of, or subparagraph (C) of paragraph (2) of, subdivision (c), that are made from the revenues described in clause (ii) of subparagraph (B) of paragraph (1).(E) The amount resulting from subtracting the combined values calculated under subparagraphs (C) and (D) from the value calculated under clause (ii) of subparagraph (B). If less than zero, the amount shall be considered zero for this purpose.(F) The amount previously transferred for the fiscal year by the Controller from the General Fund to the Budget Stabilization Account pursuant to subdivisions (c) and (d).(G) The lesser of (i) the amount, not less than zero, resulting from subtracting, from the amount calculated under subparagraph (E), the value of any suspension or reduction of transfer pursuant to paragraph (1) of subdivision (a) of Section 22 previously approved by the Legislature for the relevant fiscal year, and the amount previously transferred for that fiscal year by the Controller as described in subparagraph (F), or (ii) the amount of transfer resulting in the balance in the Budget Stabilization Account reaching the limit as specified in subdivision (e).(c) (1) (A) By October 1 of the 201516 fiscal year and each fiscal year thereafter to the 202930 fiscal year, inclusive, based on the estimates set forth in the annual Budget Act pursuant to paragraphs (2) and (3) of subdivision (h), and the sum identified in paragraph (2) of subdivision (a), the Controller shall transfer amounts from the General Fund and the Budget Stabilization Account, pursuant to a schedule provided by the Director of Finance, as provided in subparagraph (B).(B) Notwithstanding any other provision of this section, in the fiscal year to which the Budget Act identified in subparagraph (A) applies:(i) Fifty percent of both the amount identified in paragraph (2) of subdivision (a), and the amount resulting from subtracting the value calculated under subparagraph (C) of paragraph (1) of subdivision (b) from the value calculated under clause (ii) of subparagraph (B) of paragraph (1) of subdivision (b), shall be transferred from the General Fund to the Budget Stabilization Account.(ii) The (I) Subject to subclause (II), the remaining 50 percent shall be appropriated by the Legislature for one or more of the following obligations and purposes:(I)(ia) Unfunded prior fiscal year General Fund obligations pursuant to Section 8 that existed on July 1, 2014.(II)(ib) Budgetary loans to the General Fund, from funds outside the General Fund, that had outstanding balances on January 1, 2014.(III)(ic) Payable claims for mandated costs incurred prior to the 200405 fiscal year that have not yet been paid, and that pursuant to paragraph (2) of subdivision (b) of Section 6 of Article XIIIB are permitted to be paid over a term of years, as prescribed by law.(IV)(id) Unfunded liabilities for state-level pension plans and prefunding other postemployment benefits, in excess of current base amounts as established for the fiscal year in which the funds would otherwise be transferred to the Budget Stabilization Account. For the purpose of this subclause, current base amounts are those required to be paid pursuant to law, an approved memorandum of understanding, benefit schedules established by the employer or entity authorized to establish those contributions for employees excluded or exempted from collective bargaining, or any combination of these. To qualify under this subclause, the appropriation shall supplement and not supplant funding that would otherwise be made available to pay for the obligations described in this subclause for the fiscal year or the subsequent fiscal year.(ie) Payments towards the principal balance of debt owed to the federal government for moneys borrowed to support the states unemployment insurance programs under Division 1 (commencing with Section 100) of the Unemployment Insurance Code.(II) In any fiscal year the debt described in sub-subclause (ie) of subclause (I) is not repaid, the Legislature shall include in its appropriation made pursuant to this clause an appropriation for that debt repayment. If more than one obligation or purpose described in subclause (I) is funded under this clause, the greatest percentage of moneys appropriated pursuant to this clause shall be for the debt repayment described in sub-subclause (ie) of subclause (I).(III) The amendments made by the measure adding this subclause shall be operative commencing with the fiscal year following the effective date of this measure, and for every fiscal year thereafter to the 202930 fiscal year, inclusive.(2) (A) By October 1 of the 203031 fiscal year and each fiscal year thereafter, based on the estimates set forth in the annual Budget Act pursuant to paragraphs (2) and (3) of subdivision (h), the Controller shall transfer amounts from the General Fund to the Budget Stabilization Account, pursuant to a schedule provided by the Director of Finance, as provided in subparagraph (B).(B) In the fiscal year to which the Budget Act identified in subparagraph (A) applies, both the amount identified in paragraph (2) of subdivision (a), and the amount resulting from subtracting the value calculated under subparagraph (C) of paragraph (1) of subdivision (b) from the value calculated under clause (ii) of subparagraph (B) of paragraph (1) of subdivision (b), shall be transferred from the General Fund to the Budget Stabilization Account.(C) Notwithstanding any other provision of this section, the Legislature may appropriate up to 50 percent of both the amount identified in paragraph (2) of subdivision (a), and of the amount resulting from subtracting the value calculated under subparagraph (C) of paragraph (1) of subdivision (b) from the value calculated under clause (ii) of subparagraph (B) of paragraph (1) of subdivision (b), for one or more of the obligations and purposes described in subclause (I) of clause (ii) of subparagraph (B) of paragraph (1). Any appropriation made by the Legislature pursuant to this subparagraph for the obligations and purposes described in subclause (I) of clause (ii) of subparagraph (B) of paragraph (1) shall comply with the requirements specified in subclause (II) of clause (ii) of subparagraph (B) of paragraph (1).(3) The transfers described in this subdivision are subject to suspension or reduction pursuant to paragraph (1) of subdivision (a) of Section 22.(d) By October 1 of the 201617 fiscal year and each fiscal year thereafter, based on the estimates set forth in the annual Budget Act pursuant to paragraphs (4) and (5) of subdivision (h), the Controller shall transfer amounts between the General Fund and the Budget Stabilization Account pursuant to a schedule provided by the Director of Finance, as follows:(1) If the amount in subparagraph (G) of paragraph (2) of subdivision (b) is greater than zero, transfer that amount from the General Fund to the Budget Stabilization Account, subject to any suspension or reduction of this transfer pursuant to paragraph (1) of subdivision (a) of Section 22.(2) If the amount described in subparagraph (F) of paragraph (2) of subdivision (b) is greater than the amount calculated under subparagraph (E) of paragraph (2) of subdivision (b), transfer that excess amount from the Budget Stabilization Account back to the General Fund.(e) Notwithstanding any other provision of this section, the amount of a transfer to the Budget Stabilization Account pursuant to paragraph (2) of subdivision (a) and subdivisions (c) and (d) for any fiscal year shall not exceed an amount that would result in a balance in the account that, when the transfer is made, exceeds 10 percent of the amount of General Fund proceeds of taxes for the fiscal year estimated pursuant to subdivision (b). For any fiscal year, General Fund proceeds of taxes that, but for this paragraph, would have been transferred to the Budget Stabilization Account may be expended only for infrastructure, as defined by Section 13101 of the Government Code, as that section read on January 1, 2014, including deferred maintenance thereon.(f) The funds described in subdivision (b) as General Fund proceeds of taxes are General Fund proceeds of taxes for purposes of Section 8 for the fiscal year to which those proceeds are attributed, but are not deemed to be additional General Fund proceeds of taxes on the basis that the funds are thereafter transferred from the Budget Stabilization Account to the General Fund.(g) The Controller may utilize funds in the Budget Stabilization Account, that he or she determines to currently be unnecessary for the purposes of this section, to help manage General Fund daily cashflow needs. Any use pursuant to this subdivision shall not interfere with the purposes of the Budget Stabilization Account.(h) The annual Budget Act shall include the estimates described in all of the following:(1) Paragraph (2) of subdivision (a).(2) Clause (ii) of subparagraph (B) of paragraph (1) of subdivision (b).(3) Subparagraph (F) of paragraph (1) of subdivision (b).(4) Clause (ii) of subparagraph (B) of paragraph (2) of subdivision (b).(5) Subparagraph (G) of paragraph (2) of subdivision (b). |
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| 59 | 59 | | |
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| 60 | 60 | | SEC. 20. (a) (1) The Budget Stabilization Account is hereby created in the General Fund.(2) For the 201516 fiscal year and each fiscal year thereafter, based on the Budget Act for the fiscal year, the Controller shall transfer from the General Fund to the Budget Stabilization Account, no later than October 1, a sum equal to 1.5 percent of the estimated amount of General Fund revenues for that fiscal year.(b) (1) For the 201516 fiscal year and each fiscal year thereafter, based on the Budget Act for the fiscal year, the Department of Finance shall provide to the Legislature all of the following information:(A) An estimate of the amount of General Fund proceeds of taxes that may be appropriated pursuant to Article XIIIB for that fiscal year.(B) (i) An estimate of that portion of the General Fund proceeds of taxes identified in subparagraph (A) that is derived from personal income taxes paid on net capital gains.(ii) The portion of the estimate in clause (i) that exceeds 8 percent of the estimate made under subparagraph (A).(C) That portion of the states funding obligation under Section 8 that results from including the amount calculated under clause (ii) of subparagraph (B), if any, as General Fund proceeds of taxes.(D) The amount of any appropriations described in clause (ii) of subparagraph (B) of paragraph (1) of, or subparagraph (C) of paragraph (2) of, subdivision (c), that are made from the revenues described in clause (ii) of subparagraph (B) of this paragraph.(E) The amount resulting from subtracting the combined values calculated under subparagraphs (C) and (D) from the value calculated under clause (ii) of subparagraph (B). If less than zero, the amount shall be considered zero for this purpose.(F) The lesser of the amount calculated under subparagraph (E) or the amount of transfer resulting in the balance in the Budget Stabilization Account reaching the limit specified in subdivision (e).(2) In the 201617 fiscal year, with respect to the 201516 fiscal year only, and in the 201718 fiscal year and each fiscal year thereafter, separately with respect to each of the two next preceding fiscal years, the Department of Finance shall calculate all of the following, using the same methodology used for the relevant fiscal year, and provide those calculations to the Legislature:(A) An updated estimate of the amount of General Fund proceeds of taxes that may be appropriated pursuant to Article XIIIB.(B) (i) An updated estimate of that portion of the General Fund proceeds of taxes identified in subparagraph (A) that is derived from personal income taxes paid on net capital gains.(ii) That portion of the updated estimate in clause (i) that exceeds 8 percent of the updated estimate made under subparagraph (A).(C) The updated calculation of that portion of the states funding obligation under Section 8 that results from including the updated amount calculated under clause (ii) of subparagraph (B), if any, as General Fund proceeds of taxes.(D) The amount of any appropriations described in clause (ii) of subparagraph (B) of paragraph (1) of, or subparagraph (C) of paragraph (2) of, subdivision (c), that are made from the revenues described in clause (ii) of subparagraph (B) of paragraph (1).(E) The amount resulting from subtracting the combined values calculated under subparagraphs (C) and (D) from the value calculated under clause (ii) of subparagraph (B). If less than zero, the amount shall be considered zero for this purpose.(F) The amount previously transferred for the fiscal year by the Controller from the General Fund to the Budget Stabilization Account pursuant to subdivisions (c) and (d).(G) The lesser of (i) the amount, not less than zero, resulting from subtracting, from the amount calculated under subparagraph (E), the value of any suspension or reduction of transfer pursuant to paragraph (1) of subdivision (a) of Section 22 previously approved by the Legislature for the relevant fiscal year, and the amount previously transferred for that fiscal year by the Controller as described in subparagraph (F), or (ii) the amount of transfer resulting in the balance in the Budget Stabilization Account reaching the limit as specified in subdivision (e).(c) (1) (A) By October 1 of the 201516 fiscal year and each fiscal year thereafter to the 202930 fiscal year, inclusive, based on the estimates set forth in the annual Budget Act pursuant to paragraphs (2) and (3) of subdivision (h), and the sum identified in paragraph (2) of subdivision (a), the Controller shall transfer amounts from the General Fund and the Budget Stabilization Account, pursuant to a schedule provided by the Director of Finance, as provided in subparagraph (B).(B) Notwithstanding any other provision of this section, in the fiscal year to which the Budget Act identified in subparagraph (A) applies:(i) Fifty percent of both the amount identified in paragraph (2) of subdivision (a), and the amount resulting from subtracting the value calculated under subparagraph (C) of paragraph (1) of subdivision (b) from the value calculated under clause (ii) of subparagraph (B) of paragraph (1) of subdivision (b), shall be transferred from the General Fund to the Budget Stabilization Account.(ii) The (I) Subject to subclause (II), the remaining 50 percent shall be appropriated by the Legislature for one or more of the following obligations and purposes:(I)(ia) Unfunded prior fiscal year General Fund obligations pursuant to Section 8 that existed on July 1, 2014.(II)(ib) Budgetary loans to the General Fund, from funds outside the General Fund, that had outstanding balances on January 1, 2014.(III)(ic) Payable claims for mandated costs incurred prior to the 200405 fiscal year that have not yet been paid, and that pursuant to paragraph (2) of subdivision (b) of Section 6 of Article XIIIB are permitted to be paid over a term of years, as prescribed by law.(IV)(id) Unfunded liabilities for state-level pension plans and prefunding other postemployment benefits, in excess of current base amounts as established for the fiscal year in which the funds would otherwise be transferred to the Budget Stabilization Account. For the purpose of this subclause, current base amounts are those required to be paid pursuant to law, an approved memorandum of understanding, benefit schedules established by the employer or entity authorized to establish those contributions for employees excluded or exempted from collective bargaining, or any combination of these. To qualify under this subclause, the appropriation shall supplement and not supplant funding that would otherwise be made available to pay for the obligations described in this subclause for the fiscal year or the subsequent fiscal year.(ie) Payments towards the principal balance of debt owed to the federal government for moneys borrowed to support the states unemployment insurance programs under Division 1 (commencing with Section 100) of the Unemployment Insurance Code.(II) In any fiscal year the debt described in sub-subclause (ie) of subclause (I) is not repaid, the Legislature shall include in its appropriation made pursuant to this clause an appropriation for that debt repayment. If more than one obligation or purpose described in subclause (I) is funded under this clause, the greatest percentage of moneys appropriated pursuant to this clause shall be for the debt repayment described in sub-subclause (ie) of subclause (I).(III) The amendments made by the measure adding this subclause shall be operative commencing with the fiscal year following the effective date of this measure, and for every fiscal year thereafter to the 202930 fiscal year, inclusive.(2) (A) By October 1 of the 203031 fiscal year and each fiscal year thereafter, based on the estimates set forth in the annual Budget Act pursuant to paragraphs (2) and (3) of subdivision (h), the Controller shall transfer amounts from the General Fund to the Budget Stabilization Account, pursuant to a schedule provided by the Director of Finance, as provided in subparagraph (B).(B) In the fiscal year to which the Budget Act identified in subparagraph (A) applies, both the amount identified in paragraph (2) of subdivision (a), and the amount resulting from subtracting the value calculated under subparagraph (C) of paragraph (1) of subdivision (b) from the value calculated under clause (ii) of subparagraph (B) of paragraph (1) of subdivision (b), shall be transferred from the General Fund to the Budget Stabilization Account.(C) Notwithstanding any other provision of this section, the Legislature may appropriate up to 50 percent of both the amount identified in paragraph (2) of subdivision (a), and of the amount resulting from subtracting the value calculated under subparagraph (C) of paragraph (1) of subdivision (b) from the value calculated under clause (ii) of subparagraph (B) of paragraph (1) of subdivision (b), for one or more of the obligations and purposes described in subclause (I) of clause (ii) of subparagraph (B) of paragraph (1). Any appropriation made by the Legislature pursuant to this subparagraph for the obligations and purposes described in subclause (I) of clause (ii) of subparagraph (B) of paragraph (1) shall comply with the requirements specified in subclause (II) of clause (ii) of subparagraph (B) of paragraph (1).(3) The transfers described in this subdivision are subject to suspension or reduction pursuant to paragraph (1) of subdivision (a) of Section 22.(d) By October 1 of the 201617 fiscal year and each fiscal year thereafter, based on the estimates set forth in the annual Budget Act pursuant to paragraphs (4) and (5) of subdivision (h), the Controller shall transfer amounts between the General Fund and the Budget Stabilization Account pursuant to a schedule provided by the Director of Finance, as follows:(1) If the amount in subparagraph (G) of paragraph (2) of subdivision (b) is greater than zero, transfer that amount from the General Fund to the Budget Stabilization Account, subject to any suspension or reduction of this transfer pursuant to paragraph (1) of subdivision (a) of Section 22.(2) If the amount described in subparagraph (F) of paragraph (2) of subdivision (b) is greater than the amount calculated under subparagraph (E) of paragraph (2) of subdivision (b), transfer that excess amount from the Budget Stabilization Account back to the General Fund.(e) Notwithstanding any other provision of this section, the amount of a transfer to the Budget Stabilization Account pursuant to paragraph (2) of subdivision (a) and subdivisions (c) and (d) for any fiscal year shall not exceed an amount that would result in a balance in the account that, when the transfer is made, exceeds 10 percent of the amount of General Fund proceeds of taxes for the fiscal year estimated pursuant to subdivision (b). For any fiscal year, General Fund proceeds of taxes that, but for this paragraph, would have been transferred to the Budget Stabilization Account may be expended only for infrastructure, as defined by Section 13101 of the Government Code, as that section read on January 1, 2014, including deferred maintenance thereon.(f) The funds described in subdivision (b) as General Fund proceeds of taxes are General Fund proceeds of taxes for purposes of Section 8 for the fiscal year to which those proceeds are attributed, but are not deemed to be additional General Fund proceeds of taxes on the basis that the funds are thereafter transferred from the Budget Stabilization Account to the General Fund.(g) The Controller may utilize funds in the Budget Stabilization Account, that he or she determines to currently be unnecessary for the purposes of this section, to help manage General Fund daily cashflow needs. Any use pursuant to this subdivision shall not interfere with the purposes of the Budget Stabilization Account.(h) The annual Budget Act shall include the estimates described in all of the following:(1) Paragraph (2) of subdivision (a).(2) Clause (ii) of subparagraph (B) of paragraph (1) of subdivision (b).(3) Subparagraph (F) of paragraph (1) of subdivision (b).(4) Clause (ii) of subparagraph (B) of paragraph (2) of subdivision (b).(5) Subparagraph (G) of paragraph (2) of subdivision (b). |
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| 61 | 61 | | |
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| 62 | 62 | | SEC. 20. (a) (1) The Budget Stabilization Account is hereby created in the General Fund.(2) For the 201516 fiscal year and each fiscal year thereafter, based on the Budget Act for the fiscal year, the Controller shall transfer from the General Fund to the Budget Stabilization Account, no later than October 1, a sum equal to 1.5 percent of the estimated amount of General Fund revenues for that fiscal year.(b) (1) For the 201516 fiscal year and each fiscal year thereafter, based on the Budget Act for the fiscal year, the Department of Finance shall provide to the Legislature all of the following information:(A) An estimate of the amount of General Fund proceeds of taxes that may be appropriated pursuant to Article XIIIB for that fiscal year.(B) (i) An estimate of that portion of the General Fund proceeds of taxes identified in subparagraph (A) that is derived from personal income taxes paid on net capital gains.(ii) The portion of the estimate in clause (i) that exceeds 8 percent of the estimate made under subparagraph (A).(C) That portion of the states funding obligation under Section 8 that results from including the amount calculated under clause (ii) of subparagraph (B), if any, as General Fund proceeds of taxes.(D) The amount of any appropriations described in clause (ii) of subparagraph (B) of paragraph (1) of, or subparagraph (C) of paragraph (2) of, subdivision (c), that are made from the revenues described in clause (ii) of subparagraph (B) of this paragraph.(E) The amount resulting from subtracting the combined values calculated under subparagraphs (C) and (D) from the value calculated under clause (ii) of subparagraph (B). If less than zero, the amount shall be considered zero for this purpose.(F) The lesser of the amount calculated under subparagraph (E) or the amount of transfer resulting in the balance in the Budget Stabilization Account reaching the limit specified in subdivision (e).(2) In the 201617 fiscal year, with respect to the 201516 fiscal year only, and in the 201718 fiscal year and each fiscal year thereafter, separately with respect to each of the two next preceding fiscal years, the Department of Finance shall calculate all of the following, using the same methodology used for the relevant fiscal year, and provide those calculations to the Legislature:(A) An updated estimate of the amount of General Fund proceeds of taxes that may be appropriated pursuant to Article XIIIB.(B) (i) An updated estimate of that portion of the General Fund proceeds of taxes identified in subparagraph (A) that is derived from personal income taxes paid on net capital gains.(ii) That portion of the updated estimate in clause (i) that exceeds 8 percent of the updated estimate made under subparagraph (A).(C) The updated calculation of that portion of the states funding obligation under Section 8 that results from including the updated amount calculated under clause (ii) of subparagraph (B), if any, as General Fund proceeds of taxes.(D) The amount of any appropriations described in clause (ii) of subparagraph (B) of paragraph (1) of, or subparagraph (C) of paragraph (2) of, subdivision (c), that are made from the revenues described in clause (ii) of subparagraph (B) of paragraph (1).(E) The amount resulting from subtracting the combined values calculated under subparagraphs (C) and (D) from the value calculated under clause (ii) of subparagraph (B). If less than zero, the amount shall be considered zero for this purpose.(F) The amount previously transferred for the fiscal year by the Controller from the General Fund to the Budget Stabilization Account pursuant to subdivisions (c) and (d).(G) The lesser of (i) the amount, not less than zero, resulting from subtracting, from the amount calculated under subparagraph (E), the value of any suspension or reduction of transfer pursuant to paragraph (1) of subdivision (a) of Section 22 previously approved by the Legislature for the relevant fiscal year, and the amount previously transferred for that fiscal year by the Controller as described in subparagraph (F), or (ii) the amount of transfer resulting in the balance in the Budget Stabilization Account reaching the limit as specified in subdivision (e).(c) (1) (A) By October 1 of the 201516 fiscal year and each fiscal year thereafter to the 202930 fiscal year, inclusive, based on the estimates set forth in the annual Budget Act pursuant to paragraphs (2) and (3) of subdivision (h), and the sum identified in paragraph (2) of subdivision (a), the Controller shall transfer amounts from the General Fund and the Budget Stabilization Account, pursuant to a schedule provided by the Director of Finance, as provided in subparagraph (B).(B) Notwithstanding any other provision of this section, in the fiscal year to which the Budget Act identified in subparagraph (A) applies:(i) Fifty percent of both the amount identified in paragraph (2) of subdivision (a), and the amount resulting from subtracting the value calculated under subparagraph (C) of paragraph (1) of subdivision (b) from the value calculated under clause (ii) of subparagraph (B) of paragraph (1) of subdivision (b), shall be transferred from the General Fund to the Budget Stabilization Account.(ii) The (I) Subject to subclause (II), the remaining 50 percent shall be appropriated by the Legislature for one or more of the following obligations and purposes:(I)(ia) Unfunded prior fiscal year General Fund obligations pursuant to Section 8 that existed on July 1, 2014.(II)(ib) Budgetary loans to the General Fund, from funds outside the General Fund, that had outstanding balances on January 1, 2014.(III)(ic) Payable claims for mandated costs incurred prior to the 200405 fiscal year that have not yet been paid, and that pursuant to paragraph (2) of subdivision (b) of Section 6 of Article XIIIB are permitted to be paid over a term of years, as prescribed by law.(IV)(id) Unfunded liabilities for state-level pension plans and prefunding other postemployment benefits, in excess of current base amounts as established for the fiscal year in which the funds would otherwise be transferred to the Budget Stabilization Account. For the purpose of this subclause, current base amounts are those required to be paid pursuant to law, an approved memorandum of understanding, benefit schedules established by the employer or entity authorized to establish those contributions for employees excluded or exempted from collective bargaining, or any combination of these. To qualify under this subclause, the appropriation shall supplement and not supplant funding that would otherwise be made available to pay for the obligations described in this subclause for the fiscal year or the subsequent fiscal year.(ie) Payments towards the principal balance of debt owed to the federal government for moneys borrowed to support the states unemployment insurance programs under Division 1 (commencing with Section 100) of the Unemployment Insurance Code.(II) In any fiscal year the debt described in sub-subclause (ie) of subclause (I) is not repaid, the Legislature shall include in its appropriation made pursuant to this clause an appropriation for that debt repayment. If more than one obligation or purpose described in subclause (I) is funded under this clause, the greatest percentage of moneys appropriated pursuant to this clause shall be for the debt repayment described in sub-subclause (ie) of subclause (I).(III) The amendments made by the measure adding this subclause shall be operative commencing with the fiscal year following the effective date of this measure, and for every fiscal year thereafter to the 202930 fiscal year, inclusive.(2) (A) By October 1 of the 203031 fiscal year and each fiscal year thereafter, based on the estimates set forth in the annual Budget Act pursuant to paragraphs (2) and (3) of subdivision (h), the Controller shall transfer amounts from the General Fund to the Budget Stabilization Account, pursuant to a schedule provided by the Director of Finance, as provided in subparagraph (B).(B) In the fiscal year to which the Budget Act identified in subparagraph (A) applies, both the amount identified in paragraph (2) of subdivision (a), and the amount resulting from subtracting the value calculated under subparagraph (C) of paragraph (1) of subdivision (b) from the value calculated under clause (ii) of subparagraph (B) of paragraph (1) of subdivision (b), shall be transferred from the General Fund to the Budget Stabilization Account.(C) Notwithstanding any other provision of this section, the Legislature may appropriate up to 50 percent of both the amount identified in paragraph (2) of subdivision (a), and of the amount resulting from subtracting the value calculated under subparagraph (C) of paragraph (1) of subdivision (b) from the value calculated under clause (ii) of subparagraph (B) of paragraph (1) of subdivision (b), for one or more of the obligations and purposes described in subclause (I) of clause (ii) of subparagraph (B) of paragraph (1). Any appropriation made by the Legislature pursuant to this subparagraph for the obligations and purposes described in subclause (I) of clause (ii) of subparagraph (B) of paragraph (1) shall comply with the requirements specified in subclause (II) of clause (ii) of subparagraph (B) of paragraph (1).(3) The transfers described in this subdivision are subject to suspension or reduction pursuant to paragraph (1) of subdivision (a) of Section 22.(d) By October 1 of the 201617 fiscal year and each fiscal year thereafter, based on the estimates set forth in the annual Budget Act pursuant to paragraphs (4) and (5) of subdivision (h), the Controller shall transfer amounts between the General Fund and the Budget Stabilization Account pursuant to a schedule provided by the Director of Finance, as follows:(1) If the amount in subparagraph (G) of paragraph (2) of subdivision (b) is greater than zero, transfer that amount from the General Fund to the Budget Stabilization Account, subject to any suspension or reduction of this transfer pursuant to paragraph (1) of subdivision (a) of Section 22.(2) If the amount described in subparagraph (F) of paragraph (2) of subdivision (b) is greater than the amount calculated under subparagraph (E) of paragraph (2) of subdivision (b), transfer that excess amount from the Budget Stabilization Account back to the General Fund.(e) Notwithstanding any other provision of this section, the amount of a transfer to the Budget Stabilization Account pursuant to paragraph (2) of subdivision (a) and subdivisions (c) and (d) for any fiscal year shall not exceed an amount that would result in a balance in the account that, when the transfer is made, exceeds 10 percent of the amount of General Fund proceeds of taxes for the fiscal year estimated pursuant to subdivision (b). For any fiscal year, General Fund proceeds of taxes that, but for this paragraph, would have been transferred to the Budget Stabilization Account may be expended only for infrastructure, as defined by Section 13101 of the Government Code, as that section read on January 1, 2014, including deferred maintenance thereon.(f) The funds described in subdivision (b) as General Fund proceeds of taxes are General Fund proceeds of taxes for purposes of Section 8 for the fiscal year to which those proceeds are attributed, but are not deemed to be additional General Fund proceeds of taxes on the basis that the funds are thereafter transferred from the Budget Stabilization Account to the General Fund.(g) The Controller may utilize funds in the Budget Stabilization Account, that he or she determines to currently be unnecessary for the purposes of this section, to help manage General Fund daily cashflow needs. Any use pursuant to this subdivision shall not interfere with the purposes of the Budget Stabilization Account.(h) The annual Budget Act shall include the estimates described in all of the following:(1) Paragraph (2) of subdivision (a).(2) Clause (ii) of subparagraph (B) of paragraph (1) of subdivision (b).(3) Subparagraph (F) of paragraph (1) of subdivision (b).(4) Clause (ii) of subparagraph (B) of paragraph (2) of subdivision (b).(5) Subparagraph (G) of paragraph (2) of subdivision (b). |
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| 63 | 63 | | |
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| 64 | 64 | | |
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| 65 | 65 | | |
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| 66 | 66 | | SEC. 20. (a) (1) The Budget Stabilization Account is hereby created in the General Fund. |
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| 67 | 67 | | |
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| 68 | 68 | | (2) For the 201516 fiscal year and each fiscal year thereafter, based on the Budget Act for the fiscal year, the Controller shall transfer from the General Fund to the Budget Stabilization Account, no later than October 1, a sum equal to 1.5 percent of the estimated amount of General Fund revenues for that fiscal year. |
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| 69 | 69 | | |
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| 70 | 70 | | (b) (1) For the 201516 fiscal year and each fiscal year thereafter, based on the Budget Act for the fiscal year, the Department of Finance shall provide to the Legislature all of the following information: |
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| 71 | 71 | | |
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| 72 | 72 | | (A) An estimate of the amount of General Fund proceeds of taxes that may be appropriated pursuant to Article XIIIB for that fiscal year. |
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| 73 | 73 | | |
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| 74 | 74 | | (B) (i) An estimate of that portion of the General Fund proceeds of taxes identified in subparagraph (A) that is derived from personal income taxes paid on net capital gains. |
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| 75 | 75 | | |
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| 76 | 76 | | (ii) The portion of the estimate in clause (i) that exceeds 8 percent of the estimate made under subparagraph (A). |
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| 77 | 77 | | |
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| 78 | 78 | | (C) That portion of the states funding obligation under Section 8 that results from including the amount calculated under clause (ii) of subparagraph (B), if any, as General Fund proceeds of taxes. |
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| 79 | 79 | | |
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| 80 | 80 | | (D) The amount of any appropriations described in clause (ii) of subparagraph (B) of paragraph (1) of, or subparagraph (C) of paragraph (2) of, subdivision (c), that are made from the revenues described in clause (ii) of subparagraph (B) of this paragraph. |
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| 81 | 81 | | |
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| 82 | 82 | | (E) The amount resulting from subtracting the combined values calculated under subparagraphs (C) and (D) from the value calculated under clause (ii) of subparagraph (B). If less than zero, the amount shall be considered zero for this purpose. |
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| 83 | 83 | | |
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| 84 | 84 | | (F) The lesser of the amount calculated under subparagraph (E) or the amount of transfer resulting in the balance in the Budget Stabilization Account reaching the limit specified in subdivision (e). |
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| 85 | 85 | | |
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| 86 | 86 | | (2) In the 201617 fiscal year, with respect to the 201516 fiscal year only, and in the 201718 fiscal year and each fiscal year thereafter, separately with respect to each of the two next preceding fiscal years, the Department of Finance shall calculate all of the following, using the same methodology used for the relevant fiscal year, and provide those calculations to the Legislature: |
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| 87 | 87 | | |
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| 88 | 88 | | (A) An updated estimate of the amount of General Fund proceeds of taxes that may be appropriated pursuant to Article XIIIB. |
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| 89 | 89 | | |
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| 90 | 90 | | (B) (i) An updated estimate of that portion of the General Fund proceeds of taxes identified in subparagraph (A) that is derived from personal income taxes paid on net capital gains. |
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| 91 | 91 | | |
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| 92 | 92 | | (ii) That portion of the updated estimate in clause (i) that exceeds 8 percent of the updated estimate made under subparagraph (A). |
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| 93 | 93 | | |
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| 94 | 94 | | (C) The updated calculation of that portion of the states funding obligation under Section 8 that results from including the updated amount calculated under clause (ii) of subparagraph (B), if any, as General Fund proceeds of taxes. |
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| 95 | 95 | | |
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| 96 | 96 | | (D) The amount of any appropriations described in clause (ii) of subparagraph (B) of paragraph (1) of, or subparagraph (C) of paragraph (2) of, subdivision (c), that are made from the revenues described in clause (ii) of subparagraph (B) of paragraph (1). |
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| 97 | 97 | | |
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| 98 | 98 | | (E) The amount resulting from subtracting the combined values calculated under subparagraphs (C) and (D) from the value calculated under clause (ii) of subparagraph (B). If less than zero, the amount shall be considered zero for this purpose. |
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| 99 | 99 | | |
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| 100 | 100 | | (F) The amount previously transferred for the fiscal year by the Controller from the General Fund to the Budget Stabilization Account pursuant to subdivisions (c) and (d). |
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| 101 | 101 | | |
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| 102 | 102 | | (G) The lesser of (i) the amount, not less than zero, resulting from subtracting, from the amount calculated under subparagraph (E), the value of any suspension or reduction of transfer pursuant to paragraph (1) of subdivision (a) of Section 22 previously approved by the Legislature for the relevant fiscal year, and the amount previously transferred for that fiscal year by the Controller as described in subparagraph (F), or (ii) the amount of transfer resulting in the balance in the Budget Stabilization Account reaching the limit as specified in subdivision (e). |
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| 103 | 103 | | |
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| 104 | 104 | | (c) (1) (A) By October 1 of the 201516 fiscal year and each fiscal year thereafter to the 202930 fiscal year, inclusive, based on the estimates set forth in the annual Budget Act pursuant to paragraphs (2) and (3) of subdivision (h), and the sum identified in paragraph (2) of subdivision (a), the Controller shall transfer amounts from the General Fund and the Budget Stabilization Account, pursuant to a schedule provided by the Director of Finance, as provided in subparagraph (B). |
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| 105 | 105 | | |
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| 106 | 106 | | (B) Notwithstanding any other provision of this section, in the fiscal year to which the Budget Act identified in subparagraph (A) applies: |
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| 107 | 107 | | |
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| 108 | 108 | | (i) Fifty percent of both the amount identified in paragraph (2) of subdivision (a), and the amount resulting from subtracting the value calculated under subparagraph (C) of paragraph (1) of subdivision (b) from the value calculated under clause (ii) of subparagraph (B) of paragraph (1) of subdivision (b), shall be transferred from the General Fund to the Budget Stabilization Account. |
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| 109 | 109 | | |
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| 110 | 110 | | (ii) The (I) Subject to subclause (II), the remaining 50 percent shall be appropriated by the Legislature for one or more of the following obligations and purposes: |
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| 111 | 111 | | |
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| 112 | 112 | | (I) |
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| 113 | 113 | | |
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| 114 | 114 | | |
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| 115 | 115 | | |
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| 116 | 116 | | (ia) Unfunded prior fiscal year General Fund obligations pursuant to Section 8 that existed on July 1, 2014. |
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| 117 | 117 | | |
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| 118 | 118 | | (II) |
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| 119 | 119 | | |
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| 120 | 120 | | |
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| 121 | 121 | | |
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| 122 | 122 | | (ib) Budgetary loans to the General Fund, from funds outside the General Fund, that had outstanding balances on January 1, 2014. |
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| 123 | 123 | | |
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| 124 | 124 | | (III) |
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| 125 | 125 | | |
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| 126 | 126 | | |
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| 127 | 127 | | |
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| 128 | 128 | | (ic) Payable claims for mandated costs incurred prior to the 200405 fiscal year that have not yet been paid, and that pursuant to paragraph (2) of subdivision (b) of Section 6 of Article XIIIB are permitted to be paid over a term of years, as prescribed by law. |
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| 129 | 129 | | |
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| 130 | 130 | | (IV) |
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| 131 | 131 | | |
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| 132 | 132 | | |
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| 133 | 133 | | |
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| 134 | 134 | | (id) Unfunded liabilities for state-level pension plans and prefunding other postemployment benefits, in excess of current base amounts as established for the fiscal year in which the funds would otherwise be transferred to the Budget Stabilization Account. For the purpose of this subclause, current base amounts are those required to be paid pursuant to law, an approved memorandum of understanding, benefit schedules established by the employer or entity authorized to establish those contributions for employees excluded or exempted from collective bargaining, or any combination of these. To qualify under this subclause, the appropriation shall supplement and not supplant funding that would otherwise be made available to pay for the obligations described in this subclause for the fiscal year or the subsequent fiscal year. |
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| 135 | 135 | | |
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| 136 | 136 | | (ie) Payments towards the principal balance of debt owed to the federal government for moneys borrowed to support the states unemployment insurance programs under Division 1 (commencing with Section 100) of the Unemployment Insurance Code. |
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| 137 | 137 | | |
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| 138 | 138 | | (II) In any fiscal year the debt described in sub-subclause (ie) of subclause (I) is not repaid, the Legislature shall include in its appropriation made pursuant to this clause an appropriation for that debt repayment. If more than one obligation or purpose described in subclause (I) is funded under this clause, the greatest percentage of moneys appropriated pursuant to this clause shall be for the debt repayment described in sub-subclause (ie) of subclause (I). |
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| 139 | 139 | | |
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| 140 | 140 | | (III) The amendments made by the measure adding this subclause shall be operative commencing with the fiscal year following the effective date of this measure, and for every fiscal year thereafter to the 202930 fiscal year, inclusive. |
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| 141 | 141 | | |
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| 142 | 142 | | (2) (A) By October 1 of the 203031 fiscal year and each fiscal year thereafter, based on the estimates set forth in the annual Budget Act pursuant to paragraphs (2) and (3) of subdivision (h), the Controller shall transfer amounts from the General Fund to the Budget Stabilization Account, pursuant to a schedule provided by the Director of Finance, as provided in subparagraph (B). |
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| 143 | 143 | | |
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| 144 | 144 | | (B) In the fiscal year to which the Budget Act identified in subparagraph (A) applies, both the amount identified in paragraph (2) of subdivision (a), and the amount resulting from subtracting the value calculated under subparagraph (C) of paragraph (1) of subdivision (b) from the value calculated under clause (ii) of subparagraph (B) of paragraph (1) of subdivision (b), shall be transferred from the General Fund to the Budget Stabilization Account. |
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| 145 | 145 | | |
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| 146 | 146 | | (C) Notwithstanding any other provision of this section, the Legislature may appropriate up to 50 percent of both the amount identified in paragraph (2) of subdivision (a), and of the amount resulting from subtracting the value calculated under subparagraph (C) of paragraph (1) of subdivision (b) from the value calculated under clause (ii) of subparagraph (B) of paragraph (1) of subdivision (b), for one or more of the obligations and purposes described in subclause (I) of clause (ii) of subparagraph (B) of paragraph (1). Any appropriation made by the Legislature pursuant to this subparagraph for the obligations and purposes described in subclause (I) of clause (ii) of subparagraph (B) of paragraph (1) shall comply with the requirements specified in subclause (II) of clause (ii) of subparagraph (B) of paragraph (1). |
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| 147 | 147 | | |
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| 148 | 148 | | (3) The transfers described in this subdivision are subject to suspension or reduction pursuant to paragraph (1) of subdivision (a) of Section 22. |
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| 149 | 149 | | |
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| 150 | 150 | | (d) By October 1 of the 201617 fiscal year and each fiscal year thereafter, based on the estimates set forth in the annual Budget Act pursuant to paragraphs (4) and (5) of subdivision (h), the Controller shall transfer amounts between the General Fund and the Budget Stabilization Account pursuant to a schedule provided by the Director of Finance, as follows: |
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| 151 | 151 | | |
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| 152 | 152 | | (1) If the amount in subparagraph (G) of paragraph (2) of subdivision (b) is greater than zero, transfer that amount from the General Fund to the Budget Stabilization Account, subject to any suspension or reduction of this transfer pursuant to paragraph (1) of subdivision (a) of Section 22. |
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| 153 | 153 | | |
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| 154 | 154 | | (2) If the amount described in subparagraph (F) of paragraph (2) of subdivision (b) is greater than the amount calculated under subparagraph (E) of paragraph (2) of subdivision (b), transfer that excess amount from the Budget Stabilization Account back to the General Fund. |
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| 155 | 155 | | |
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| 156 | 156 | | (e) Notwithstanding any other provision of this section, the amount of a transfer to the Budget Stabilization Account pursuant to paragraph (2) of subdivision (a) and subdivisions (c) and (d) for any fiscal year shall not exceed an amount that would result in a balance in the account that, when the transfer is made, exceeds 10 percent of the amount of General Fund proceeds of taxes for the fiscal year estimated pursuant to subdivision (b). For any fiscal year, General Fund proceeds of taxes that, but for this paragraph, would have been transferred to the Budget Stabilization Account may be expended only for infrastructure, as defined by Section 13101 of the Government Code, as that section read on January 1, 2014, including deferred maintenance thereon. |
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| 157 | 157 | | |
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| 158 | 158 | | (f) The funds described in subdivision (b) as General Fund proceeds of taxes are General Fund proceeds of taxes for purposes of Section 8 for the fiscal year to which those proceeds are attributed, but are not deemed to be additional General Fund proceeds of taxes on the basis that the funds are thereafter transferred from the Budget Stabilization Account to the General Fund. |
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| 159 | 159 | | |
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| 160 | 160 | | (g) The Controller may utilize funds in the Budget Stabilization Account, that he or she determines to currently be unnecessary for the purposes of this section, to help manage General Fund daily cashflow needs. Any use pursuant to this subdivision shall not interfere with the purposes of the Budget Stabilization Account. |
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| 161 | 161 | | |
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| 162 | 162 | | (h) The annual Budget Act shall include the estimates described in all of the following: |
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| 163 | 163 | | |
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| 164 | 164 | | (1) Paragraph (2) of subdivision (a). |
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| 165 | 165 | | |
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| 166 | 166 | | (2) Clause (ii) of subparagraph (B) of paragraph (1) of subdivision (b). |
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| 167 | 167 | | |
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| 168 | 168 | | (3) Subparagraph (F) of paragraph (1) of subdivision (b). |
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| 169 | 169 | | |
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| 170 | 170 | | (4) Clause (ii) of subparagraph (B) of paragraph (2) of subdivision (b). |
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| 171 | 171 | | |
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| 172 | 172 | | (5) Subparagraph (G) of paragraph (2) of subdivision (b). |
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