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 tax revenues, increase deposits during high capital gains years, expand eligible debt repayment uses including unemployment insurance loans, and adjust Gann Limit interactions. The Democratic-led Legislature approved the measure in late June 2026 with strong bipartisan margins just before the ballot deadline, following budget negotiations that also addressed a projected structural deficit. Governor Newsom backed the proposal as a tool to build larger reserves and protect core services during revenue volatility. Trader consensus at roughly 71% for passage aligns with the measure’s fiscal framing and limited organized opposition to date.