A poll last month by the Public Policy Institute of California found that only 26 percent of likely voters support the measure, although a more recent poll by Survey USA found the measure supported by 58 percent. “This will have the effect of smoothing out the peaks and valleys so if we ever undergo another dot-com boom, we won’t just go out and spend that money like drunken sailors,” Coupal said. Harrison Sheppard, (916)446-6723 [email protected] PROPOSITION 76 State spending and school funding What it does: Limits state spending increases to a formula based on the average of the previous three years’ growth. Modifies Proposition 98 to eliminate some payback requirements when money is borrowed from the education budget. Gives the governor greater authority to make budget cuts. Key Supporters: Gov. Arnold Schwarzenegger, California Chamber of Commerce, Howard Jarvis Taxpayers Association. Key Opponents: California Teachers Association, California Democratic Party, California Labor Federation. Fiscal impact: The Legislative Analyst’s Office estimates it will likely reduce state spending and result in smaller fluctuations in spending.160Want local news?Sign up for the Localist and stay informed Something went wrong. Please try again.subscribeCongratulations! You’re all set! AD Quality Auto 360p 720p 1080p Top articles1/5READ MOREWalnut’s Malik Khouzam voted Southern California Boys Athlete of the Week The measure would allow the state budget to grow by no more than an amount equal to the average of growth in the past three budgets. Proponents argue that this would help smooth fluctuations in state spending. It also would modify Proposition 98 – the voter-approved law that guarantees education funding – to lessen the amount that would need to be repaid when the state borrows from the education budget. Under current law, if the Legislature suspends Proposition 98 to fund education at less than the required level, it must add the money back to the base amount in future years. Proposition 76 also would prohibit borrowing from special funds and would give the governor greater power to make budget cuts in years when revenues are falling short of projections. “The centerpiece feature is the fact that it would limit increases in spending to the average rate of increase in the three previous years,” said Jon Coupal, president of the Howard Jarvis Taxpayers Association, which endorses the measure. SACRAMENTO – Known as the “Live Within Our Means” act, Proposition 76 is the centerpiece of Gov. Arnold Schwarzenegger’s reform agenda on the November special-election ballot. The measure would enact multiple reforms to the state budgeting process in a move that the governor and his supporters say would make the process smoother and keep spending under control. Schwarzenegger is proposing the measure as a way to get the state’s fluctuating revenue cycle under control, demonstrated by the state turning a multibillion-dollar surplus during the dot-com boom into a multibillion-dollar deficit only a few years later. “We don’t have any mechanism now that compels the state to balance its budget within a fiscal year,” said Tom Campbell, the governor’s finance director who is on leave to run the “Yes on 76” campaign.