Governor Schwarzenegger has pushed for changes to the budget process twice before. The overall goals have not changed. They are to limit spending and to allow for mid-year cuts. One attempt was Proposition 76 in 2005.
Mark Baldassare with the Public Policy Institute of California says the idea of a spending limit played well with voters. But he says a split between Democrats and Republicans killed it. To succeed this time around he says the plan needs a variety of backers.
“Chances are that voters would really view this measure through a partisan lens. It needs bi-partisan support, business and labor support.”
The Governor’s new proposal requires the state to save money when revenues are strong. It would also trigger automatic spending reductions when there’s a budget deficit.