Public finance: Balanced Budget Accountability Act of 2025.
The proposed amendments within ACA13 would also prohibit state agencies from imposing new charges or increasing existing fees without legislative ratification by a two-thirds vote. This move is seen as a means to protect taxpayers from sudden increases in state-imposed financial burdens. Furthermore, ACA13 introduces a requirement that state agencies must annually subject at least 10% of their program activities to competitive bidding, which aims to enhance transparency, improve efficiency, and potentially lower costs associated with state-operated programs. Isolated exceptions exist for sworn law enforcement services.
Assembly Constitutional Amendment No. 13 (ACA13), introduced by Assembly Member DeMaio, is a legislative proposal aimed at amending the California Constitution regarding public finance and budgetary practices. Titled the Balanced Budget Accountability Act of 2025, the bill seeks to ensure stricter control over state appropriations from the General Fund by mandating that all such appropriations be passed by a two-thirds vote in both houses of the Legislature. This amendment would replace existing provisions that allow certain appropriations to be enacted by majority vote, thus reinforcing the principle of fiscal responsibility within state governance.
Nonetheless, ACA13 has sparked considerable debate regarding its implications for state-funded services and the overall efficacy of government operations. Proponents argue that higher voting thresholds for appropriations will compel legislators to be more judicious in state spending, thereby fostering a culture of accountability. Critics, however, warn that such restrictions could stifle essential funding for public services, particularly during fiscal constraints, and could hinder the state's ability to respond effectively to urgent needs.
The proposal also includes provisions related to state employment costs, capping them at a percentage of previous fiscal year's costs adjusted for average wage changes. By imposing these constraints, ACA13 aims to address concerns about rising personnel expenses which may contribute to budget deficits, thus aiming for a balance between fiscal discipline and the maintenance of necessary government functions.