California's Proposition 2, a legislatively referred constitutional amendment on the November 2026 ballot, would raise the cap on the Budget Stabilization Account from 10% to 20% of general fund tax revenue, adjust deposit rules during high capital gains years, extend debt repayment requirements through 2040, and exclude certain reserve deposits from the Gann Limit. The measure advanced through the Legislature in June 2026 with strong Democratic majorities and support from Governor Newsom, emphasizing greater reserves to cushion education, health care, and public safety funding against revenue volatility. Recent voter guides and analyses highlight endorsements from public safety and business groups alongside Republican concerns over reduced taxpayer rebates, aligning with trader consensus favoring passage at 70.6% for Yes.