• Limits state spending to prior year’s level plus three previous years’ average revenue growth.
• Changes state minimum school funding requirements (Proposition 98); eliminates repayment requirement when minimum funding suspended.
• Excludes appropriations above the minimum from schools’ funding base.
• Directs excess General Fund revenues, currently directed to schools/tax relief, to budget reserve, specified construction, debt repayment.
• Permits Governor, under specified circumstances, to reduce appropriations of Governor’s choosing, including employee compensation/state contracts.
• Continues prior year appropriations if state budget delayed.
• Prohibits state special funds borrowing.
• Requires payment of local government mandates.