Lawmakers can't slip up making rainy-day fund

The easiest way to save money -- at least the most effective -- is to bank it before you see it. Not only does that make sure the money goes into savings, it also forces you to live on less.
That's the theory behind 401k plans and similar long-term savings programs: the money comes out and goes into savings before the rest of the paycheck hits the checking account.
That approach, but on a much larger scale, is behind a proposal floated by California Gov. Jerry Brown, who Wednesday called a special legislative session to make changes in a rainy-day measure voters will decided in the November election.
Brown wants to replace the current ballot measure. That proposal seeks to channel more state income into the emergency fund and would make it harder to tap except in emergencies, such as earthquakes and wildfires.
Brown's proposal would allow more flexibility for future governors and lawmakers. He wants to fund the emergency account with part of the capital gains revenue when it spikes, as it is this year with revenue collections running $1.4 billion ahead of projections. That money would be reserved for school spending and paying down debt and unfunded liabilities.
California voters actually approved a rainy-day fund 10 years ago, filling it with 3 percent of the state's annual revenue. But, according to Brown's office, the current system places no restrictions on when the fund can be tapped and requires deposits even in years of budget deficits. Talk about a bone-headed restriction.
"We simply must prevent the massive deficits of the last decade, and we can only do that by paying down our debts and creating a solid rainy day fund," the governor said in a statement.
Republicans have criticized Democrats, claiming they are really just trying to weaken the current measure, ACA4, on the November ballot.
Brown will be forced to deal with GOP concerns since changing the existing measure requires a super-majority vote of the Legislature. The Democrats hold such a majority in the Assembly, but with three Senate Democrats under suspension Brown's party no longer holds a super-majority of the upper chamber seats.

In reality, those majorities have kept Republicans on the legislative sidelines for months and Assembly Republican leader Connie Conway said she is pleased GOP lawmakers will have an opportunity to be heard.

"Republicans will not support a rainy-day fund that diverts from the initial purpose to actually save money, or one that allows the majority party to dip into the savings as much as they want, whenever they want," Conway said in a statement.

It's good Republican ideas will be seriously aired. No one party should hold a legislative stranglehold on the state. That being said, the Republicans have an obligation to work across the aisle and with the governor's office to fashion a ballot measure that provides funds when the economy turns south but makes it hard -- but not impossible -- to tap those funds when really needed.