California Gov. Jerry Brown called for a special state legislature session next week to press for support for his revised reserve fund ballot proposal.
Four years ago, the legislature approved a proposal for a new rainy day fund to be on the November 2014 ballot.
Brown is now pitching a revised reserve fund that would increase deposits when the state has spikes in capital gain revenue, limit withdrawals to prevent dependency on the fund at the start of economic downturns and create a reserve specifically for California K-12 schools.
In a statement, Brown said the revised fund will better help the state pay down debts and unfunded liabilities.
Unlike the state’s current rainy day reserve, which was not well-funded during the recent economic recession, the new proposed one would require the state to dedicate a portion of its tax revenue in times of capital gains.
The legislature is scheduled to meet for the special session next Thursday.