2026 California Ballot: Proposition 2

Proposition 2: Allows the state of California to increase the cap on contributions made towards its emergency rainy day fund from 10% of general fund tax revenue to 20%.

• California's Rainy Day Fund was approved by voters in 2014. Building state budget reserves to help maintain funding for education, health care, public safety, and other essential services during economic downturns. 
• The measure would also allow the state to use some the reserve funds to pay off debt, though it does not require state lawmakers and state government to do so.
• Opposers of the proposition say this cap increase will only enable more state spending, taking money away from taxpayers.

FISCAL IMPACT: State budget reserves would be higher.

"Yes" Vote:  The state would double its reserve requirement from 10% to 20% of General Fund revenue.

"No" Vote:  Requirement for state reserves would not change from 10% of General Fund revenue.

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