California Democratic leaders, including Governor Gavin Newsom and legislative majorities, advanced the Save for California’s Future Act through the Legislature in late June 2026 with the required two-thirds votes, placing it on the November ballot as Proposition 2. The measure would raise the constitutional cap on the Budget Stabilization Account from 10% to 20% of general fund tax revenues, boost mandatory deposits during high capital gains years, adjust Gann Limit treatment to exclude deposits, and expand eligible debt repayments such as unemployment insurance obligations. Supporters frame the changes as prudent preparation for revenue volatility tied to the state’s stock market-dependent economy. Republicans have raised concerns that the proposal could enable greater spending flexibility or function as a slush fund amid ongoing budget pressures. The 68.1% implied probability for approval reflects trader assessment of these legislative momentum and fiscal-stability arguments ahead of the November vote.