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CaliforniaACA 202025-2026 Regular SessionHouseWALLET

Save for California’s Future Act.

Sponsored By: Jesse Gabriel (Democratic), Melissa Hurtado (Democratic), John Laird (Democratic), Avelino Valencia (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 0 benefits, 0 costs, 4 mixed.

Automatic deposits into the rainy-day fund

The law creates a Budget Stabilization Account (rainy-day fund) in the General Fund. Starting in 2027–28 and every year after, the Controller deposits 1.5% of estimated General Fund revenues into the fund by October 1. From 2027–28 through 2039–40, deposits and related moves follow a schedule set by the Director of Finance using the Budget Act. In those years, half of certain extra amounts go into the reserve, and the Legislature can use the other half to pay past school funding owed under the constitution’s rules, repay budgetary loans to the General Fund, or book some provider payment loan costs sooner. This builds savings for downturns but leaves less money to spend in deposit years.

Emergency support for schools and colleges

When the Governor declares a budget emergency, the Legislature may use the school stabilization account to support school districts and community colleges. In an emergency year, the Legislature can also pause or reduce that year’s transfer into the school reserve by a set dollar amount. This helps keep classrooms and services going in a downturn, but slows savings for schools that year.

Capital gains revenue checks and reports

Beginning in 2027–28, the Department of Finance reports each year how much General Fund tax revenue comes from personal income tax on net capital gains. It also calculates the share above 8% of General Fund tax proceeds (up to 10%) and treats 150% of the share above 10% in its formulas. Starting in 2027–28, DOF updates these figures for the prior two fiscal years using the same methods. These numbers guide reserve deposits and how school funding obligations are calculated.

Emergency rules to use reserves

A budget emergency exists if the Governor declares a state emergency or if estimated resources cannot fund General Fund spending at the highest level of any of the last three Budget Acts after inflation and population growth. In an emergency, the Legislature can pause or reduce the annual rainy‑day deposit for one year and can return money from the reserve to the General Fund. No more than 50% of the reserve balance can be returned in a fiscal year, unless money was already returned in the prior year. When legal conditions exist, a budget revision from the Director of Finance that proposes these steps serves as the Governor’s emergency proclamation.

Sponsors & Cosponsors

Sponsors

  • Jesse Gabriel

    Democratic • House

  • Melissa Hurtado

    Democratic • Senate

  • John Laird

    Democratic • Senate

  • Avelino Valencia

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 143 • No: 28

House vote • 6/25/2026

Item 1000 — Assembly AFLOOR

Yes: 55 • No: 18

House vote • 6/25/2026

Item 1000 — Assembly AFLOOR

Yes: 59 • No: 8

Senate vote • 6/25/2026

Item WORF — Senate SFLOOR

Yes: 29 • No: 2

Actions Timeline

  1. Chaptered by Secretary of State - Res. Chapter 130, Statutes of 2026.

    6/25/2026Senate

  2. Enrolled and filed with the Secretary of State at 12 p.m.

    6/25/2026Senate

  3. In Assembly. Ordered to Engrossing and Enrolling.

    6/25/2026House

  4. Adopted and to Assembly. (Ayes 29. Noes 2.)

    6/25/2026Senate

  5. Withdrawn from committee.

    6/25/2026Senate

  6. Unanimous consent granted to take up without reference to file.

    6/25/2026Senate

  7. In Senate. To Com. on RLS.

    6/25/2026Senate

  8. Adopted and to Senate. (Ayes 59. Noes 8.)

    6/25/2026House

  9. Ordered to third reading.

    6/25/2026House

  10. Withdrawn from committee.

    6/25/2026House

  11. Assembly Rule 63 suspended.

    6/25/2026House

  12. Assembly Rule 96 suspended.

    6/25/2026House

  13. From printer.

    6/23/2026House

  14. Assembly Rule 46 suspended. (Ayes 51. Noes 16. Page 5784.)

    6/22/2026House

  15. Referred to Com. on RLS.

    6/22/2026House

  16. Introduced. To print.

    6/22/2026House

  17. Assembly Rule 66 suspended. (Ayes 51. Noes 16. Page 5784.)

    6/22/2026House

Bill Text

  • Chaptered

    6/25/2026

    HTML

  • Enrolled

    6/25/2026

    HTML

  • Introduced

    6/22/2026

    HTML

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