SACRAMENTO, Calif. (AP) - Gov. Jerry Brown and legislative leaders have agreed to replace the rainy day fund measure on the November ballot with a bipartisan plan that would set aside revenue equal to 10 percent of California's general fund.
The Legislature is expected to vote on the replacement measure next week. It would then supersede the rainy day fund already slated to go before voters in the general election.
The governor's office announced the deal Thursday, including statements of support from all four Democratic and Republican legislative leaders.
The proposal calls for increasing the maximum size of the state's reserve, which would be funded primarily through additional capital gains revenue during boom years. Part of it would be dedicated to paying down state debt and liabilities, estimated at $340 billion.