California voters will decide Proposition 2 in November, a constitutional amendment that would raise the cap on the state’s Budget Stabilization Account from 10% to 20% of general fund revenues, boost mandatory deposits during high capital gains years, expand allowable uses to include additional debt repayment such as federal unemployment insurance obligations, and adjust interactions with the Gann spending limit to facilitate larger reserves. The measure advanced with the required two-thirds legislative majorities in both houses in late June 2026, backed by Governor Gavin Newsom and Democratic leaders who cite the need for stronger buffers against revenue volatility. Republican lawmakers have raised concerns that the changes could reduce pressure for spending restraint. With limited subsequent campaign developments reported, the current trader consensus around 68% Yes reflects the state’s partisan composition and the appeal of fiscal stabilization measures, alongside uncertainty over turnout and competing ballot priorities.