California voters will decide Proposition 2 on November 3, a legislatively referred constitutional amendment that doubles the rainy day fund cap from 10% to 20% of general fund tax revenue, adjusts capital gains deposit rules, extends mandatory debt payments through 2040, and excludes reserves from the Gann spending limit. The measure advanced in June 2026 with strong Democratic legislative support and limited Republican backing, backed by Governor Newsom and framed as enhancing fiscal reserves for education, health care, and public safety during downturns. Opposition centers on risks of larger reserves functioning as a slush fund or delaying taxpayer refunds. Trader consensus at 71% Yes reflects the measure’s structural focus on volatility management and the absence of major recent campaign shifts or polling reversals in the final weeks.