Rainy Day Fund
What it is
California already has a rainy-day fund for emergencies or economic challenges, but Proposition 2 would allow more money to be put away for times of need. Currently, when the state has too much money on hand, it must immediately spend it on schools and issue refunds to taxpayers.
What Your Vote Means
Voting YES
Rules for building state budget reserves and paying down extra state debts would change. As a result, state budget reserves would be higher. The state also would be required to make extra debt payments for longer.
Voting NO
Rules for building state budget reserves and paying down extra state debts would not change.
Arguments
Supporters say
Proposition 2 would help the state handle unforeseen challenges with more existing funds on hand. The California Democratic Party, Gov. Gavin Newsom and Democratic nominee for Governor Xavier Becerra support the measure.
Opponents say
Proposition 2 would serve as a slush fund for politicians and could allow the state legislature to withhold additional tax revenue. They also say it would make it far more unlikely that taxpayers would get refunds. Republicans oppose the measure.
Fiscal Impact
State budget reserves would be higher.
Campaign Finance
Supporting
$0
0 contributions · 0 contributors
Opposing
$0
0 contributions · 0 contributors
No contributions were found supporting or opposing Prop 2.
Last updated on October 19, 2026. Source: CA Secretary of State Power Search