California Voters Approve Higher Rainy-Day Fund CapCalifornia Voters Back Stronger Buffer Against Economic ShocksCalifornia Expands Reserve Cap Instead of Returning More Revenue
California voters approved Proposition 2 on November 3, giving state officials authority to set aside as much as 20% of taxes collected for the general fund, twice the existing ceiling.Voters approved Proposition 2 on November 3, letting California save up to 20% of general fund tax revenue to prepare for downturns and possible federal cuts.California voters approved Proposition 2 on November 3, doubling the reserve cap to 20% even as critics warned that lawmakers could misuse a larger financial cushion.