Balanced Budget. Taxes.

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BALANCED BUDGET. TAXES. INITIATIVE CONSTITUTIONAL AMENDMENT. Amends California Constitution to explicitly require Legislature to pass balanced budget by June 15. Budget deemed "balanced" if recommended expenditures do not exceed estimated revenues. Prohibits postponement of time for passage of budget. If June 15 deadline missed, members of Legislature forfeit compensation until budget bill passed. Retroactive payment of such compensation prohibited. Prohibits amendment of Governor's budget bill to create deficit; permits amendment to increase or decrease an item therein. Delays effective date of new taxes by Legislature until day preceding next general election in November of even-numbered year, unless specified emergency declared. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: The measure would result in unknown state and local revenue losses to the extent the effective date of new or increased taxes and fees is delayed. The measure also would result in minor savings in legislative expenses in any year in which passage of the State budget is delayed beyond June 15.