FOR IMMEDIATE RELEASE: September 15, 2014
FOR MORE INFORMATION: Maria Unzueta (657) 464-4742 (Cell)
STATE SENATE CANDIDATE JOSE SOLORIO ENDORSES STATE PROPOSITION 2 TO HELP ADD FISCAL CERTAINTY FOR STATE
Constitutional Amendment On Statewide November Ballot Would Institutionalize Fiscal Responsibility And Saving By Creating A Rainy Day Fund For California
SANTA ANA – State Senate Candidate Jose Solorio announced today that he has formally endorsed State Proposition 2, a constitutional amendment that is on the statewide ballot for voter approval this November. The measure would require the state to create a rainy day budget stabilization fund to help pay off state debt and liabilities, while saving money for challenging times in the future.
“Proposition 2 will help institutionalize fiscal responsibility and the habit of saving,” said Jose Solorio, who supported an effort to get the measure on the statewide ballot when he was a Member of the State Assembly. “In California the only state budget certainty lately has been that there is no certainty,” continued Solorio. “We need to even out our wild revenue swings from year to year and add in more predictability and stability so we can pay down our debt and plan better.”
The measure would require the state legislature to each year set aside 1.5 percent of the state’s General Fund revenues into a special state budget stabilization fund and keep doing so until the fund reaches a full 10 percent of total General Fund spending. The funds could then be used as a rainy day fund to draw upon and even out the state’s volatile revenue swings during tough
economic times. Suspending deposits or making a withdrawal from the stabilization fund could not be done unless the Governor declared a formal state of fiscal emergency.
Additionally, for the next fifteen years, half of the 1.5 percent set aside in the stabilization fund would be utilized to pay off the state’s long-term debt so the state could effectively balance its need to save with its need to pay down its growing liabilities. The ballot measure also calls for deposits to be made from excess capital gains revenues in years where revenues exceed 8 percent of all General Fund revenue.
A newly created separate reserve account for education would also benefit from deposits.
“The ballot measure makes a lot of sense,” said Solorio. “The state needs to better plan and be prepared for tough economic times. It also helps to stabilize important state funding for education. I am proud to support it and would like to urge California voters to do the same this November.”
Jose Solorio is the President of the Board of Trustees for the Rancho Santiago Community College District, which oversees Santa Ana College and Santiago Canyon College, and represents 700,000 residents in the cities of Anaheim, Garden Grove, Irvine, Orange, Santa Ana, Tustin, and Villa Park. Prior to that, he represented the cities of Anaheim, Garden Grove and Santa Ana in the State Assembly for six years. He holds a bachelor’s degree from UC Irvine and a master’s degree in public policy from Harvard University. To learn more about Jose Solorio and his State Senate Campaign, please visit www.SolorioForSenate.com,
Facebook.com/Solorio4California, and/or Twitter.com/JoseSolorio.