I f all the initiatives on the November ballot pass, the impact on the state budget will be substantial. Because the initiatives target different tax and spending streams, the effect is cumulative. None of the initiatives cancels another. Major impact on state budget Of the six initiatives on the ballot, four have significant fiscal implications. Because the initiatives aim at different tax and spending streams, and different levels of government, their impact is cumulative.
None cancels another.
Their effect on the state budget is largely discretionary, depending on the degree to which lawmakers choose to mitigate local revenue losses or meet the I-745 goals by boosting state roads spending. The former shifts money out of general fund surpluses, moving it to a dedicated account not subject to the Initiative 601 spending limit. The latter dictates spending from the general fund, below the I-601 limit. Below, we ll explore the effect of the initiatives on the state budget. General Fund State.