It would force automatic cuts to the state budget to avoid large deficits like the one California faces now.
"When revenues spike upwards, the amendment I propose would not let us spend all the money that rushes in when the economy is good. Instead, we would set some of the good year money aside for bad years."
Schwarzenegger is grappling with a projected $14 billion budget gap over the next 18 months. Revenues have tapered off with the slowing economy but spending continues to grow.
In the Democratic response…state Assembly Speaker Fabian Nunez said advocating automatic cuts but failing to establish priorities is political leadership at its worst.