The California Constitution requires the Governor to submit to the Legislature, as specified, a budget for the ensuing fiscal year containing itemized statements for recommended state expenditures and estimated state revenues. The California Constitution requires the Legislature to pass the budget bill by midnight on June 15 of each year and authorizes each house to pass the budget bill and other bills providing for appropriations related to the budget bill by rollcall vote entered in the journal, a majority of the membership concurring. The California Constitution prohibits the total annual appropriations subject to limitation of the state, as defined, and of each local government from exceeding the appropriations limit of the entity of government for the prior year adjusted for the change in the cost of living and the change in population. Except as provided, existing statutory law requires a state agency to secure at least 3 competitive bids or proposals for each contract.

This bill would declare the intent of the Legislature to enact a constitutional amendment that would achieve cost savings for the state and that would balance the budget by cutting then capping the total annual labor costs in the state budget, requiring state government agencies to competitively source or contract out services, and requiring that both the state budget as a whole and any new program fees be approved by a ²/₃ vote of the Legislature.