Assembly adopts ACA 20 to expand rainy day fund, sends constitutional amendment to Senate

The Assembly voted on May 7 to adopt ACA 20, a constitutional amendment titled by its sponsor as the "Safe for California’s Future Act," which would increase the maximum cap on the state's rainy day fund and change several technical deposit and withdrawal rules before referral to the Senate and (if enacted by both houses and approved by voters) amendment of the state constitution.

Assemblymember Gabriel, the bill’s author, described four core changes: increasing the rainy day fund cap from 10% to 20% of general fund revenues; increasing mandatory deposits in boom years; adjusting how the Gann limit applies (to withdrawals rather than deposits); and technical changes intended to modernize the fund’s operation. Gabriel framed the measure as a multiyear investment in fiscal stability and future generations.

Assemblymember Tangipa offered amendments that would prioritize increasing the rainy day fund to 21%, codify repayment of unemployment insurance debt, and require certain prioritizations for lawful residents during emergencies. The majority leader moved to lay the amendments on the table; the motion passed on a procedural roll call, 'ayes 48, noes 17.'

Opponents, including Assemblymember De Maio, called ACA 20 a vehicle to weaken voter-approved spending limits and described it as a "scam" that could create larger discretionary balances the legislature could spend in future years; proponents responded that the change would add fiscal prudence and protect services in downturns.

After closing remarks from the author and additional debate, the Assembly recorded a final vote of 54 in favor and 8 opposed. The Assembly adopted the measure and ordered immediate transmittal to the Senate.

The action does not itself change law: ACA 20 would move to the Senate and then, if approved by both houses, to voters as a constitutional amendment.