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AB 1740 to Create a Fiscally Responsible State Savings Account is Heard in Assembly Sub-Committee 6
(SACRAMENTO) – This morning Assembly Budget Sub-Committee 6 took testimony on AB 1740, the proposed bill by Assemblymember Tim Grayson (D-Concord) and eight of his colleagues, to create a savings account that will protect the state against the boom and bust cycles of the past decades.
Upon the conclusion of the hearing Assemblymember Grayson stated, “This account is the best way to ensure we are able to sufficiently save for the next recession. Independent analysis has shown that we will need at least $20 billion to protect against cuts during a downturn, and the Rainy Day Fund will not get us all the way there. This account is a common sense measure that follows the adage of saving when times are good so we have money when they are not.”
Grayson continued, “This Legislature and the Governor have done what so many before have failed to do: save for a rainy day. However, because we know our savings are still insufficient, now is the time to put even more money away before California faces drastic reductions to revenue that will force us to choose between funding our children’s education and providing vital services for the elderly. I look forward to this fiscally responsible measure being enacted into the budget.”
At the end of testimony AB 1740 was placed on the Budget Suspense file and will be taken up for a vote in the coming weeks.