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Rainy Day Fund

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CALIFORNIA | LOCAL
January 4, 2014 | By Chris Megerian and Anthony York
SACRAMENTO -- Gov. Jerry Brown will join the push for a new ballot measure to help California stockpile cash as a buffer against future recessions, according to two Capitol officials. The proposed measure, which would need approval from two-thirds of the Legislature before it could be presented to voters in November, would siphon off some tax revenue and channel it into a special savings account. If successful, the account could mitigate the need for deep spending cuts during economic downturns and help California shed its reputation as a financial roller coaster.
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CALIFORNIA | LOCAL
April 26, 2014 | By Michael Finnegan
Neel Kashkari, a Laguna Beach Republican running for governor in the June 3 primary, expressed support Saturday for a proposal by Democratic incumbent Jerry Brown to strengthen California's “rainy day fund” and accelerate the state's repayment of debt. Kashkari told reporters at a campaign stop in Thousand Oaks that Brown's plan was “a small incremental step in the right direction.” He urged Republican lawmakers to approve it without insisting on adjustments. “I'm definitely in the camp of don't let the perfect be the enemy of the good,” he said.
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CALIFORNIA | LOCAL
June 10, 2009 | Shane Goldmacher
Senate Democrats unveiled a budget plan Tuesday that would stave off the deepest proposed cuts to California's health, welfare and student-aid programs by dipping heavily into the rainy-day fund that Gov. Arnold Schwarzenegger wants set aside in case the economy continues to sour. The governor declared the Democrats' approach to dealing with the state's projected $24-billion deficit "hallucinatory."
CALIFORNIA | LOCAL
April 20, 2014 | George Skelton, Capitol Journal
SACRAMENTO - High-stakes bargaining is about to begin in California's Capitol. As the weather heats up in Sacramento every year, so does the intensity. There'll be bartering over wonky programs and policies that for most citizens would be snooze-inducing. But for Gov. Jerry Brown and legislative leaders, it's about political positioning, agenda attaining and legacy building. The political leaders have been laying their demands and wish lists on the negotiating table in recent days while most lawmakers were off on spring break.
NEWS
March 5, 2002 | Associated Press
Gov. Bob Holden on Monday declared an economic emergency in Missouri, the first step toward drawing from a state savings fund to finance government services facing likely cuts. Holden's declaration seeks to use $135 million from the state reserve fund to pay for mental health services, public transit and other government functions in his budget for fiscal 2003, which starts July 1. Two-thirds of the 163-member House and the 34-member Senate must approve the request for it to take effect.
BUSINESS
August 19, 1990 | BILL SING
Do you have a big enough financial cushion to withstand the recession that many economists say is coming or is already here? If you lost your job or suffered other financial setbacks, could you make it through the transition? If the answer is no, or you aren't sure, start now to build up your financial reserves. You don't want to be caught without adequate rainy day funds or with retirement savings that you could lose if your employer goes bankrupt.
OPINION
January 16, 2014 | By The Times editorial board
Proposition 98, which was approved by the voters in 1988 to ensure that California's schools were adequately funded, has not served the state or public education well. By requiring a set percentage of state revenue to go to public schools, it has inhibited the Legislature's ability to make sound budgeting decisions, and it has not saved schools during the worst budget years, when there are exemptions to the funding guarantee. The result has been that when the state is flush, schools embark on expensive and permanent new programs - higher teacher wages and retirement benefits, for example, or after-school activities - that become unaffordable during downturns.
OPINION
January 22, 2008 | Gray Davis, Gray Davis was the 37th governor of California.
In 2002, I was running for reelection, and the country had fallen into a deep recession. I met a woman who blamed me for the loss of her husband's job. When I inquired what state agency he worked for, she replied that he worked for General Motors. Understandably, she was hurting. I learned a valuable lesson that day: In good times, governors get more credit than they deserve, and in bad times, they get more blame.
CALIFORNIA | LOCAL
March 19, 1995 | HOWARD L. BERMAN, Howard L. Berman (D-Panorama City) represents California's 26th District in the U.S. House of Representatives
It took Congress only two weeks to pass $8.6 billion in emergency disaster relief after the Northridge earthquake. As with every emergency spending bill in the past, Congress was not required to cut programs that served the whole nation to pay for the catastrophe that occurred in Southern California. Since the congressional district I represent suffered enormous damage in the earthquake, I was one of the leading advocates of the relief bill. I saw victims receive emergency care.
CALIFORNIA | LOCAL
April 20, 2014 | George Skelton, Capitol Journal
SACRAMENTO - High-stakes bargaining is about to begin in California's Capitol. As the weather heats up in Sacramento every year, so does the intensity. There'll be bartering over wonky programs and policies that for most citizens would be snooze-inducing. But for Gov. Jerry Brown and legislative leaders, it's about political positioning, agenda attaining and legacy building. The political leaders have been laying their demands and wish lists on the negotiating table in recent days while most lawmakers were off on spring break.
CALIFORNIA | LOCAL
April 18, 2014 | By Chris Megerian
SACRAMENTO - Soon after Jerry Brown was elected governor in 2010, he invited the state's top budget official, Ana Matosantos, to lunch at his office. He had just two months to prepare his first plan for tackling California's $26-billion deficit. He asked his assistant to fetch the budget director a sandwich. Then, Matosantos said, the incoming governor of one of the world's largest economies ate a single hard-boiled egg, sprinkled with salt. Brown's dietary discipline was a hint of the regimented approach he would take to California's staggering financial problems, which he had promised to fix by pushing the state back into the black.
CALIFORNIA | LOCAL
April 16, 2014 | By Chris Megerian
SACRAMENTO - Raising the stakes in his campaign to strengthen California's finances, Gov. Jerry Brown on Wednesday called a special session of the state Legislature for next week to consider a new plan to save money and pay off state debt, an election-year pitch that he must make to lawmakers without the benefit of a Democratic supermajority. Brown's proposal is aimed at cushioning the state against recessions and calming its turbulent fiscal waters. It would require Sacramento to capture spikes in revenue and either save the money to prevent budget cuts during a downturn or pay off debt and cover long-term liabilities such as public pensions.
CALIFORNIA | LOCAL
April 16, 2014 | By Chris Megerian
SACRAMENTO -- Gov. Jerry Brown on Wednesday called a legislative special session to prod lawmakers to approve his proposal for creating a new reserve fund, which the governor says will insulate the state from the economic turbulence it's suffered in the past. The special session is scheduled to begin on April 24. California has had a rainy day fund since 2004, but it's mostly been left empty amid the state's budget crises and there are weak rules for funding the account. Brown wants a new plan that would require the state to save some tax revenue from capital gains.
CALIFORNIA | LOCAL
February 2, 2014 | By Anthony York
SACRAMENTO - Gov. Jerry Brown, once perceived as a paragon of California liberalism, finds himself accused of disregarding California's impoverished at a time when President Obama is warning of the expanding inequality between rich and poor in America. The criticism is rooted in the governor's devotion to austerity. His detractors say his tightfistedness hampers the state's ability to address basic, life-sustaining needs of the 9 million Californians living in poverty - more than in any other state, according to census figures.
OPINION
January 16, 2014 | By The Times editorial board
Proposition 98, which was approved by the voters in 1988 to ensure that California's schools were adequately funded, has not served the state or public education well. By requiring a set percentage of state revenue to go to public schools, it has inhibited the Legislature's ability to make sound budgeting decisions, and it has not saved schools during the worst budget years, when there are exemptions to the funding guarantee. The result has been that when the state is flush, schools embark on expensive and permanent new programs - higher teacher wages and retirement benefits, for example, or after-school activities - that become unaffordable during downturns.
CALIFORNIA | LOCAL
January 16, 2014 | By Patrick McGreevy
SACRAMENTO - Gov. Jerry Brown's proposal to stash $1.6 billion in a rainy day fund as a buffer against future economic downturns could face a challenge this year from Mother Nature. As Southern California firefighters on Thursday battled the Colby fire near Glendora and evidence mounted that the state is in a drought, state officials are concerned that the signs point to an expensive fire season that could undermine budget plans. The governor is proposing that the California Department of Forestry and Fire Protection budget for firefighting emergencies go from $152 million this year to $186 million in the fiscal year starting July.
BUSINESS
December 19, 2010 | Liz Weston, Money Talk
Dear Liz: We just refinanced our $100,000 mortgage into a 15-year fixed-rate loan at 3.75%. We have an extra $500 a month and want to know what we should do with it. Should we use the money to pay off the mortgage early, increase the contribution to my 403(b), or start a rainy day fund and try to save up to three months of my take-home salary? I'm 44, my wife is 35, and we have three kids ages 5, 3 and 9 months. I would like to retire in 16 years. Answer: At least two of your children won't be through college by the time you want to retire, so you may need to rethink your plans unless you have an exceptionally generous pension or a lot of money saved in that 403(b)
CALIFORNIA | LOCAL
April 16, 2014 | By Chris Megerian
SACRAMENTO -- Gov. Jerry Brown on Wednesday called a legislative special session to prod lawmakers to approve his proposal for creating a new reserve fund, which the governor says will insulate the state from the economic turbulence it's suffered in the past. The special session is scheduled to begin on April 24. California has had a rainy day fund since 2004, but it's mostly been left empty amid the state's budget crises and there are weak rules for funding the account. Brown wants a new plan that would require the state to save some tax revenue from capital gains.
CALIFORNIA | LOCAL
January 15, 2014 | George Skelton, Capitol Journal
SACRAMENTO - Gov. Jerry Brown's proposed rainy-day reserve is better than nothing, but it falls far short of what the state really needs to fix its cockeyed tax system. The governor is attempting to treat the symptoms of revenue instability rather than attacking the root cause of the ailment. At the root are two maladies: First, a politically convenient state income tax that leans too heavily on the rich, whose fortunes fluctuate wildly during times of boom and bust. Second, a very old sales tax too narrowly focused on retail goods rather than services.
CALIFORNIA | LOCAL
January 11, 2014 | By Chris Megerian
SACRAMENTO - Gov. Jerry Brown stepped out from behind the podium holding a green marker, ready to assume the role of professor. As he laid out his new budget plan, he circled the spot on a chart showing California's budding surplus. Some people think "we should go on a spending binge," he said. He wouldn't do that, Brown said: "We see the lessons of history. " If anyone in the Capitol knows California history, it's the 75-year-old governor serving his second stint in office.
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