Sen. Strickland introduced Senate Constitutional Amendment 10 today, which aims to fix California’s $26.6 billion budget deficit.
Almost 20 years ago voters approved the Gann Spending limit, which set a cap on expenditures based on the combined annual increase in inflation and population growth.
While the Gann limit remains on the books today, there have been so many exemptions created, it’s been rendered basically worthless.
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Sponsored by the Howard Jarvis Taxpayers Association, SCA 10 amends the California Constitution to create a spending cap in place of the existing Gann Spending limit. SCA 10 would require excess revenues be allocated to a reserve account, to the State School fund, and also to taxpayers.
“The Legislature has an appetite for spending – this measure will put them on a diet,” Sen. Strickland said. “During a time when we’re facing an over $26 billion budget shortfall and the second-highest unemployment in the nation, we need to spend within our means, just like every other Californian.”
“This spending cap will help get us out of this budget mess without raising taxes and in the long-term, will set aside money for a much-needed rainy-day fund, as well as allocate excess money for education and to be reimbursed to the taxpayers,” Sen. Strickland added.
“Families across the state are living paycheck to paycheck and deserve to have their tax dollars spent as efficiently as possible. SCA 10 is a good first step in setting up budget reform that will last for years to come.”