California voters face a November 3 ballot measure, Proposition 2, that would raise the constitutional cap on the Budget Stabilization Account from 10 percent to 20 percent of General Fund tax revenues while requiring larger deposits during high capital-gains years and adjusting Gann Limit treatment of reserves. Legislative leaders and the governor placed the measure on the ballot in late June after securing the required two-thirds votes in both houses, framing it as a tool to smooth revenue volatility and protect education, health care, and debt repayment. Recent budget negotiations reinforced this approach by directing additional reserves into related accounts ahead of potential economic swings. These developments, combined with limited organized opposition and the measure’s alignment with long-standing fiscal stabilization goals, underpin traders’ current assessment of passage odds.