Proposition 2
Increases State's Rainy Day Fund
On the ballot
California · November 2026 general election · Constitutional amendment · Election day November 3, 2026
Topics: Government structure, Taxes and revenue
In plain language
Proposition 2 would change the constitutional rules for California's Budget Stabilization Account, the reserve voters created in 2014. It would double the cap on that reserve from 10 percent to 20 percent of General Fund revenues, requiring the state to keep setting money aside until the balance reaches the higher cap. It would also require additional deposits in years when tax revenues are high, and would widen what reserve money can be used for, including education, state debts, and pension obligations. The Legislature placed it on the ballot through Assembly Constitutional Amendment 20.
Fiscal impact
Legislative Analyst's Office summary of the estimate of net state and local government fiscal impact: "State budget reserves would be higher."
Summarized from the official fiscal analysis listed in the sources below. Figures are the state's, not this site's.
What supporters and opponents say
These are summaries of arguments made by the named organizations, drawn from the sources listed below. They are their claims, not this site's, and this site takes no position on the measure.
What supporters say
- The ballot argument signed by Darrell Roberts (California Professional Firefighters), Jesse Gabriel (chair of the Assembly Budget Committee), and Maria S. Salinas (Los Angeles Area Chamber of Commerce) says larger reserves would protect schools, health clinics, and fire protection when revenues fall.
- Supporters state in the official argument that the Legislative Analyst's Office has recommended the state save significantly more than current rules require, and say Proposition 2 follows that advice.
What opponents say
- The ballot argument signed by Assemblymember David Tangipa, Senator Steven Choi, and Carl DeMaio of Reform California says the measure would make the state budget more volatile and that the Legislature needs spending discipline rather than a new savings tool.
- Opponents argue in the official argument that state spending has gone to what they call boondoggle projects and no-bid contracts, and that easing the state appropriations limit would allow more wasteful spending.
Reproduced verbatim from the state's certified ballot text.
Increases State's Rainy Day Fund. Legislative Constitutional Amendment. Official title and summary prepared by the Attorney General: • Increases California's Rainy Day Fund, approved by voters in 2014, to provide funding for education, health care, public safety, and other essential services during economic downturns. • Doubles the budget reserve cap from 10% to 20% of General Fund revenues, requiring savings until Fund's balance equals 20% of General Fund. • Requires additional savings in years when tax revenues are high. • Increases budget reserves available for education, state debts, and pension obligations.
Sources
Everything on this page traces to these sources. Follow them to read the original documents.
Last updated . How this page is sourced and corrected is described in the correction policy.