A measure for a new rainy day fund will be heading to voters. Assembly Speaker John Perez says this represents a commitment to break the bad habits of the past.

"...and build a modest but solid reserve that represents our commitment to keeping California's finances healthy and stable in the long term," he said.

Chief Republican Assemblyman Whip Dan Logue says his party has been fighting for this for four to five years.

"This is a step in the right direction. This will give businesses some security on doing business in California, we'll be able to fund our schools without the roller coaster effect that we've had," he said.

The deal negotiated between Governor Jerry Brown and legislative leaders last week is meant to guard against future recessions by depositing 1.5 percent of the general fund revenues along with spikes in capital gains taxes.

If approved, half of the money would be saved and half of the money would be used to pay down debt.