EXECUTIVE ORDER B-22-13
WHEREAS the proposed 2013-14 budget is projected to be balanced and remain balanced for the foreseeable future, but the economic forecast is uncertain and it is important to maintain a General Fund reserve for the 2013-14 fiscal year; and
WHEREAS California’s economy continues to recover from the worst recession since the Great Depression, but recent federal actions have slowed the pace of the state’s economic growth; and
WHEREAS Section 20(b)(3) of Article XVI of the Constitution of the State of California requires the Controller, no later than September 30, 2013, to transfer a sum equal to 3 percent of the estimated amount of General Fund revenues for the 2013-14 fiscal year to the Budget Stabilization Account; and
WHEREAS the transfer required by Section 20(b)(3) of Article XVI of the Constitution of the State of California to be made on September 30, 2013, is estimated to be approximately $2.9 billion; and
WHEREAS Section 20(f)(1) of Article XVI of the Constitution of the State of California requires that 50 percent of all money transferred to the Budget Stabilization Account be deposited in the Bond Retirement Sinking Fund Subaccount and such money cannot be used to protect the General Fund from an economic slowdown; and
WHEREAS Section 20(e) of Article XVI of the Constitution of the State of California provides that any transfer from the General Fund to the Budget Stabilization Account may be suspended for the next fiscal year by an executive order issued no later than June 1, 2013; and
WHEREAS suspending the transfer will not prevent the regularly scheduled payments of the Economic Recovery Bonds.
NOW, THEREFORE, I, EDMUND G. BROWN JR., Governor of the State of California, in accordance with Section 20(e) of Article XVI of the Constitution of the State of California, HEREBY ORDER the suspension of the September 30, 2013, transfer from the General Fund to the Budget Stabilization Account in order to avoid additional program cuts while still maintaining a modest General Fund reserve during this period of continued economic uncertainty.
IN WITNESS WHEREOF I have hereunto set my hand and caused the Great Seal of the State of California to be affixed this 31st day of May 2013.
___________________________________
EDMUND G. BROWN JR.
Governor of California
ATTEST:
___________________________________
DEBRA BOWEN
Secretary of State