California Proposition 2 on the November 2026 ballot would amend the state constitution to raise the Budget Stabilization Account cap from 10% to 20% of General Fund revenues, modify interactions with the Gann spending limit, expand debt repayment options, and strengthen mandatory deposits during high capital-gains revenue years. The measure, advanced in June 2026 through bipartisan legislative votes and backed by Governor Gavin Newsom, responds to recent budget volatility and aims to build larger reserves for downturns while protecting school funding. With the election roughly three months away, current trader consensus at 68.8% for passage reflects the measure’s legislative origin, limited organized opposition to date, and alignment with ongoing efforts to replenish reserves amid projected fiscal pressures.