One of the lessons of the last year is that we should have been building more robust rainy day funds before the economy went sour. Hopefully, it is a lesson we will remember when the economy starts to rebound.
I-1033 will make that difficult. It sets a strict limit on the amount of state, county and city revenue that can be spent. Any money above that limit must be used for property tax cuts; it cannot be used to build savings for the next downturn.
At the state level, I-1033 would exempt constitutionally-mandated deposits into the rainy day fund from the calculation of the limit. However, deposits above the minimum would not be exempt.
At the city and county level, there does not appear to be any exception made for rainy day funds.
To view our slideshow that provides more details on I-1033, click here.
I-1033 will make that difficult. It sets a strict limit on the amount of state, county and city revenue that can be spent. Any money above that limit must be used for property tax cuts; it cannot be used to build savings for the next downturn.
At the state level, I-1033 would exempt constitutionally-mandated deposits into the rainy day fund from the calculation of the limit. However, deposits above the minimum would not be exempt.
At the city and county level, there does not appear to be any exception made for rainy day funds.
To view our slideshow that provides more details on I-1033, click here.
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