The California Constitution has always allowed bond issues (state debt) for specified capital works, above a certain value.
The Act created a reserve fund called the Budget Stabilization Account in case of future financial trouble.
Propositions 57 and 58 were the centerpiece of Governor Arnold Schwarzenegger's plan to resolve California's budget problems.
While Prop 58 was to provide balanced California budgets, the deficits continued in subsequent years, growing larger over time.
[citation needed] Summary of Legislative Analyst's Estimate of Net State and Local Government Fiscal Impact: