California Ballot Guide 2026

Authorizes $11.25 billion in state general obligation bonds for multifamily rental housing, veterans' mortgages, supportive housing, preservation and down-payment assistance.

Fiscal impact

State cost of $500 million to $600 million a year for about 25 years to repay the bonds.

Increases California's Rainy Day Fund, approved by voters in 2014, to fund education, health care, public safety and other essential services during economic downturns. Doubles the reserve cap from 10% to 20% of General Fund revenues and requires extra savings in years when tax revenues are high.

Fiscal impact

State budget reserves would be higher.

Makes permanent the 2012 voter-approved income tax rates for high earners, now set to expire in 2031. The rates apply to income over about $371,000 for single filers, $742,000 for joint filers and $505,000 for heads of household (2025 levels; adjusted annually for inflation). Allocates the tax revenues 89% to K–12 schools and 11% to community colleges; the LAO estimates roughly 40% of the overall funding would go to schools and community colleges, with the rest going to other state programs.

Fiscal impact

Keeps $5 billion to $15 billion a year in state income tax revenue that would otherwise end after 2031.

Repeals the ban on state and local governments offering public funding of candidates' election campaigns, for candidates who agree to spending limits and meet eligibility rules. Programs may not use funds earmarked for education, transportation or public safety, and candidates may not use public funds for legal defense, fines or repaying personal loans to their campaigns. Triples the maximum fine for campaign contributions by foreign entities.

Fiscal impact

A few hundred thousand dollars a year for the Fair Political Practices Commission (FPPC) to advise governments on these programs.

Under current law, voters decide at the same election whether to recall a state officer and who replaces them. Under this measure, if the Governor is recalled, the Lieutenant Governor becomes Governor; other recalled offices stay vacant until filled by a later special election or by appointment. A recalled officer may run in the special election.

Fiscal impact

Net effect unknown; in a recall, savings or costs of millions of dollars depending on the office.

Authorizes up to $25 billion in revenue bonds for fixed-rate loans covering up to 17% of the price of a newly built home (priced below about $1 million to $1.5 million, by county). Buyers must meet income limits, live in the home and put at least 3% down.

Fiscal impact

No direct state or local costs.

Authorizes $8.4 billion in general obligation bonds for immunology and immunotherapy research: half to one University of California-affiliated nonprofit institute, half to research grants.

Fiscal impact

State cost of $500 million to $600 million a year for about 20 years, with some or all of the cost offset if the funded research generates revenue.

Mail ballots would need the last four digits of a designated government ID number on the envelope; in-person voters would have to show government ID.

Fiscal impact

Costs of tens of millions to low hundreds of millions of dollars a year to put in place.

Imposes a one-time tax of up to 5% on certain taxpayers with covered assets over $1 billion. Covered assets include businesses, securities, art, collectibles and intellectual property; real property and some pensions and retirement accounts are excluded. Allocates 90% of the revenue to health care and 10% to food assistance or education-related programs. Exempts the revenue from constitutional requirements for school funding, budget reserves and the state spending limit.

Fiscal impact

Temporary revenue of tens of billions of dollars over several years; possible ongoing loss of under $1 billion a year in income tax from billionaires.

If Prop 41 or Prop 42 gets more yes votes than Prop 40, Prop 40 could be stopped from becoming law even if a majority votes yes, because courts could find that they conflict (LAO). Prop 41 would also void taxes enacted after Jan. 1, 2026 whose revenue is exempt from the state spending limit, and Prop 42 would void taxes enacted after Jan. 1, 2026 that conflict with it.

Nullifies state taxes enacted after Jan. 1, 2026 that exempt their revenues from the voter-approved state spending limit. Requires a pre-election audit of programs that would be funded by a voter-proposed special tax, and recurring audits of programs funded by special taxes enacted after Jan. 1, 2026. Other measures on the same ballot are void if they conflict with it and it gets more yes votes.

Fiscal impact

Unknown; depends on future decisions by voters and lawmakers.

If Prop 41 gets more yes votes than Prop 40, Prop 40 could be stopped from becoming law even if a majority votes yes, because courts could find that the two conflict (LAO).

Prohibits any new state tax (1) on the ownership of personal property (everything people own other than real estate, including business interests, intellectual property and financial assets such as retirement and investment accounts), or (2) that applies retroactively based on a taxpayer's past activities. Nullifies taxes enacted after Jan. 1, 2026 that conflict with it. Other measures on the same ballot are void if they conflict with it and it gets more yes votes.

Fiscal impact

Tax revenues may not grow as much in the future.

If Prop 42 gets more yes votes than Prop 40, Prop 40 could be stopped from becoming law even if a majority votes yes, because courts could find that the two conflict (LAO).

Raises the approval needed for voter-proposed local special taxes from a simple majority to two-thirds, starting Jan. 1, 2027.

Fiscal impact

Local tax revenues may not grow as much in the future.

Penalizes nonprofit Federally Qualified Health Centers (FQHCs) that spend less than 90% of revenue on program services.

Fiscal impact

State costs in the low tens of millions of dollars a year, covered by fees.

Amends the California Environmental Quality Act (CEQA) to speed up environmental review for certain projects (including most housing, transportation, water and health projects) by setting deadlines to complete review and to resolve lawsuits challenging project approvals.

Fiscal impact

Initial state and local costs likely in the high tens of millions of dollars a year, possibly over $100 million, partly covered by fees. Uncertain, potentially more significant positive or negative longer-term fiscal effects.