Assemblymember Daly Statement on Budget Bill

Package Approved by Legislature Includes Record Funding Dedicated to Reserves

For immediate release:

SACRAMENTO – Assemblymember Tom Daly (D – Anaheim) released the following statement touting legislative approval of a state budget package earlier this week. That package includes an unprecedented $37.5 billion committed to reserves.

“Strong reserves can stand as a bulwark against the effects of the next economic downturn, which may occur within the next couple years,” Assemblymember Daly said. “This agreement makes an historic investment in budget reserves, which can help offset future deficits or pay for essential services when revenues decline.”

Daly has for many years been a leading voice within the Legislature calling for building reserves in the state budget. In 2014, he helped place Proposition 2, a measure to improve the state’s Rainy Day Fund, on the ballot (it was approved by California voters).

In 2018, Daly authored legislation (AB 1740) which led to the establishment of the Budget Deficit Savings Account. Under the Legislature’s budget plan, half of any extra higher revenues through next June would be added to that account.

And last month, Daly sent a letter (signed by nine other Assemblymembers) asking Governor Gavin Newsom to commit to increasing the size of the state’s budget reserves.