California voters will decide Proposition 2 on the November 2026 ballot, a legislative constitutional amendment that would raise the cap on the Budget Stabilization Account from 10% to 20% of general fund revenues, increase mandatory deposits during high capital gains years, adjust Gann Limit treatment of reserves, and extend debt repayment requirements through 2040. The measure, advanced by the Legislature in June 2026 with strong majorities and backed by Governor Newsom, aims to build larger reserves against revenue volatility while protecting school funding and essential services. With no organized opposition filed and endorsements from public safety and business groups, trader pricing reflects expectations of approval driven by the absence of counter-campaigns and the appeal of fiscal stabilization rules ahead of the election.