California voters face a November 2026 ballot measure, placed by the Legislature in late June as part of the 2026-27 budget agreement, that would amend the state constitution to raise the Budget Stabilization Account cap from 10% to 20% of general fund revenues. The proposal, advanced by Democratic leaders and Governor Newsom with votes of 54-8 in the Assembly and 29-2 in the Senate, also adjusts capital gains deposit triggers, extends debt repayment requirements through 2039-40, expands eligible liabilities such as federal unemployment insurance loans, and exempts certain reserve deposits from the Gann spending limit while counting withdrawals against it. Supporters frame the changes as a response to revenue volatility and the need for larger reserves ahead of potential downturns. Republican critics have warned the measure could enable greater spending flexibility rather than strict savings. With no major subsequent developments through August, trader pricing at 70.9% for approval reflects the measure’s legislative momentum and alignment with prior voter-approved reserve rules amid ongoing fiscal debates.