Democrats have historically been skeptical of proposals to create budget reserves, fearing they would lead to a spending cap. But this one, the speaker says, is different.
Pérez wants to set aside volatile capital gains revenues in good economic times - which he says would reduce budget deficits during future recessions. "So there's not an artificial spending cap, but rather an automatic movement of these spiked funds into a savings account that helps you in the downturns."
The speaker says the current proposal on the November 2014 ballot is flawed, as it was crafted during what he calls "ugly budget negotiations" with former Governor Arnold Schwarzenegger. He wants to pull that "rainy day fund" off the ballot and put his version on instead.
Pérez spoke in an interview with Capital Public Radio's Insight ahead of an appearance at the Sacramento Press Club.