2026 California General Election — West Covina ballot measure research
Raises the constitutional cap on the state Budget Stabilization Account (rainy day fund) from 10% to 20% of General Fund revenues.
The rainy day fund is filled with existing state General Fund revenue. California's General Fund is funded mainly by:
Prop 2 does not create a new tax, fee, or debt. It only changes how much of that existing revenue the state is allowed to hold in reserve.
The Budget Stabilization Account was created by the original Proposition 2 in 2014 with a 10% cap. The basic history of deposits and withdrawals is tracked publicly by the State Controller:
Balances and transfers are publicly reported in enacted budgets and the State Controller's financial reports, though the program-level outcomes of money that moves back into the General Fund are a separate accountability question.
The rainy day fund does not contract directly with nonprofits. When the Governor declares a budget emergency and the Legislature approves a withdrawal, the money returns to the General Fund and is spent through the regular budget process — the same annual Budget Act and trailer bills that authorize all state spending.
Recent budgets that drew partly on reserve withdrawals included payments to organizations and local governments. Examples from the 2024–25 budget:
Most of these are one-time grants rather than ongoing contracts. California does have recurring programs that fund nonprofits through departments such as CalHHS, CalHFA, CDSS, and Cal OES, but those are authorized through the annual Budget Act, not directly by the reserve account.
My Vote: Yes
Why: This measure does not create a new tax or obligation. It only lets the state save more of its existing revenue. Withdrawals require a declared budget emergency and a legislative vote, and the money flows back into the General Fund where spending is publicly appropriated and traceable.