California voters will decide Proposition 2 on November 3, 2026, a legislatively referred constitutional amendment to raise the Budget Stabilization Account cap from 10% to 20% of general fund revenues while adjusting deposit rules for high capital gains years, extending debt repayment requirements, and modifying Gann Limit treatment of reserves. The Legislature approved the measure in late June 2026 with strong Democratic support and Governor Newsom’s backing after budget negotiations, placing it on the ballot as a bipartisan fiscal responsibility effort endorsed by groups including firefighters and chambers of commerce. Limited organized opposition and the absence of competing counter-proposals have supported the current trader consensus around a 70.5% chance of approval.