Governor Jerry Brown, Senate President pro Tem Darrell Steinberg, Assembly Speaker John A. Perez, Senate Republican Leader Bob Huff and Assembly Republican Leader Connie Conway announced a bipartisan agreement today to create a Rainy Day Fund to “maintain fiscal stability and prepare for the next economic downturn.” State Senator Jim Nielsen (R-Gerber), Vice Chair of the Senate Budget Committee, issued the following statement:

“The Governor and Legislative leaders should be commended for their swift action and forward thinking to provide a savings account in preparation for economic uncertainties.

“The Rainy Day Fund Agreement appears to be fiscally sound. Its size will increase to a maximum 10 percent of General Fund revenues.

“I am especially pleased to know that limits are in place for withdrawals, and that the funds cannot be raided on the whim of the Legislature’s desire to spend.”

The Legislature is expected to vote on the new agreement next week. The measure will then go before the voters on the November ballot.