The rainy-day fund can grow to 20% of General Fund tax revenue (now 10%). Deposits count toward the state spending limit only when withdrawn. Extra debt payments are required for 10 years and can pay more kinds of debt.
Proposition 2 · California · Nov 3, 2026
Changing California’s rainy-day reserves
Official title: Increases State’s Rainy Day Fund. Legislative Constitutional Amendment.
Changes the rules for state reserves and additional debt payments. The official summary says reserves would be higher.
At a glance
Budget rule change- Does it raise taxes?
- No new tax.
- Estimated cost or revenue
- Larger reserves, making budgets easier to balance in weak years. More debt paid down, especially in strong years.
- Who pays
- Existing state revenue; no new tax.
- Where the money goes
- Reserves and paying down state debt.
- How long
- Not yet verified in detail.
Worth knowing: Future revenues and reserve deposits vary.
From the official voter guide and the state’s fiscal analysis. Estimates are the state’s, not ours.
Your choice
Saved privately on this device.What your vote does
The rainy-day fund stays capped at 10% and current reserve rules stay the same.
This is a change to state budget rules.
Who it affects
The state budget and public services supported by it.
How the money works
TypeBudget rule change
Rate or thresholdNo new tax rate identified in the official summary.
Cost, who pays and where the money goes are in “At a glance” above.
What your guides say
No guides selected yet. Pick guides to compare.
Why they disagree
Stops the state from spending surplus tax money in good times and protects schools, health care and public safety when the economy slows.
Official ballot argument for (summary)Weakens the state spending limit, allows more wasteful spending, and makes it less likely surplus tax money is returned to taxpayers.
Official ballot argument against (summary)Who’s funding it
We haven’t loaded campaign-finance filings for Proposition 2 yet. You can look them up directly:
Sources
- California Secretary of State
Proposition 2: Official Voter Information Guide · Official title, summary, vote effects and fiscal impact
Checked Oct 31, 2026 - Easy Voter Guide (League of Women Voters of California Education Fund)
Easy Voter Guide, November 3, 2026 · State propositions
Checked Nov 1, 2026