AUTHORIZES BONDS FOR HOUSING AFFORDABILITY PROGRAMS. LEGISLATIVE STATUTE. Authorizes $11.25 billion in state general obligation bonds for housing affordability programs, including multifamily rental housing, mortgages for veterans, supportive housing, preservation of existing affordable housing, and downpayment assistance.

Fiscal Impact: Increased state cost of $500 million to $600 million annually for about 25 years to repay the housing bond.

Supporters: US Vets; CA Federation of Teachers; Self-Help for the Elderly; Habitat for Humanity CA; CA Alliance of Child & Family Services

Opponents: None submitted

INCREASES STATE’S RAINY DAY FUND. LEGISLATIVE CONSTITUTIONAL AMENDMENT. Increases California’s Rainy Day Fund, approved by voters in 2014, to provide funding for education, health care, public safety, and other essential services during economic downturns.

Fiscal Impact: State budget reserves would be higher.

Supporters: CA Professional Firefighters; LA Chamber of Commerce; Gavin Newsom; Xavier Becerra; Assemblymember Jesse Gabriel

Opponents: None submitted

PROVIDES PERMANENT FUNDING FOR SCHOOLS AND HEALTH CARE BY EXTENDING TAX ON HIGH INCOMES. INITIATIVE CONSTITUTIONAL AMENDMENT. Makes permanent existing voter-approved tax rates for individuals earning over $371,000 (adjusted annually for inflation). Allocates tax revenues to public education.

Fiscal Impact: Maintains $5 billion to $15 billion of annual state income tax revenue by making a temporary tax increase on high-income earners permanent instead of letting it expire in 2031.

Supporters: California Teachers Association; CA School Nurses Organization; California State PTA; Planned Parenthood Affiliates of CA

Opponents: California Taxpayers Association; Family Business Association of California; California Hispanic Chambers of Commerce

REPEALS PROHIBITION AGAINST PUBLIC FUNDING OF ELECTION CAMPAIGNS. LEGISLATIVE STATUTE. Repeals prohibition on state and local governments offering public funding of candidate election campaigns. Public funding programs may not use funds earmarked for education, transportation, or public safety.

Fiscal Impact: Ongoing costs to the state of a few hundred thousand dollars each year for the Fair Political Practices Commission to answer questions from the state and local governments about public campaign finance programs.

Supporters: League of Women Voters of CA; California Nurses Association; Mental Health Advocacy; Social Security Works; Consumer Watchdog

Opponents: California Taxpayers Assn; Howard Jarvis Taxpayers Assn; Family Business Assn of California; United Latinos Action

CHANGES RECALL ELECTION PROCESS FOR STATEWIDE OFFICERS. LEGISLATIVE CONSTITUTIONAL AMENDMENT. Under current law, voters elect replacement candidates at the same time as the recall election. This measure instead fills recall vacancies by subsequent special election or appointment.

Fiscal Impact: Net fiscal effect unknown. In the event of a recall, savings or costs of millions of dollars to administer the election depending on the office recalled.

Supporters: None submitted

Opponents: None submitted

CREATES LOAN PROGRAM FOR MIDDLE-INCOME BUYERS OF QUALIFIED NEW HOMES. INITIATIVE STATUTE. Authorizes $25 billion in bonds to offer eligible buyers fixed-rate mortgages for up to 17% of purchase price of a newly constructed home priced below about $1.5 million. Borrowers must be California residents, occupy the home, meet income limits, and pay at least 3% down. Bonds repaid by mortgage payments, not State.

Fiscal Impact: Net fiscal effect unknown. In the event of a recall, savings or costs of millions of dollars to administer the election depending on the office recalled.

Supporters: United Nurses Associations of California; California Conference of Carpenters; California State Treasurer Fiona Ma

Opponents: None submitted

AUTHORIZES BONDS FOR IMMUNOLOGY MEDICAL RESEARCH. INITIATIVE STATUTE. Authorizes $8.4 billion in general obligation bonds for immunology and immunotherapy research, half to a single University of California-affiliated nonprofit medical research institute, half to research grants.

Fiscal Impact: Increased state cost of $500 million to $600 million annually for about 20 years to repay the research bond, with some or all of the cost offset if the funded research generates revenue.

Supporters: Michael J. Fox Foundation; Alzheimer’s Los Angeles; Kidney Cancer Assoc; American Nurses Assoc\CA

Opponents: Robert M. Kaplan, Ph.D.

PROHIBITS CITIZENS FROM VOTING UNLESS THEY PRESENT GOVERNMENT-ISSUED IDENTIFICATION. INITIATIVE CONSTITUTIONAL AMENDMENT. Invalidates mail ballots that do not have last four digits of designated government-issued identification number written on envelope. Prohibits in-person voting without presenting government-issued identification.

Fiscal Impact: Costs of between tens of millions of dollars and low hundreds of millions of dollars each year to implement new voting requirements.

Supporters: The Transparency Foundation; Latino American Political Assn; Howard Jarvis Taxpayers Assn; CA Women’s Leadership Assn

Opponents: ACLU California Action; Common Cause, League of Women Voters of California

IMPOSES ONE-TIME TAX ON CERTAIN TAXPAYERS. INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE. Imposes 5% tax on certain taxpayers with assets over $1 billion; revenue primarily for health care. Exempts revenues from constitutional requirements for school funding and spending limit.

Fiscal Impact: Temporary revenue increase of tens of billions of dollars spread over several years from wealth tax on billionaires. Possible ongoing decrease of less than $1 billion per year in income tax revenue from billionaires.

Supporters: US Senator Bernie Sanders; SEIU United Healthcare Workers West

Opponents: California Primary Care Association; California School Boards Association; California Taxpayers Association

PROHIBITS NEW STATE TAXES THAT EXCLUDE REVENUES FROM STATE SPENDING LIMIT. REQUIRES AUDITS FOR NEW STATE SPECIAL TAXES. INITIATIVE CONSTITUTIONAL AMENDMENT. Nullifies state taxes enacted after January 1, 2026 that exempt their revenues from voter-approved state spending limit. Requires pre-election and recurring audits of programs funded by new special taxes.

Fiscal Impact: The net fiscal effect is unknown as it depends on future decisions by voters, the Legislature, and other policymakers.

Supporters: CA Society of Certified Public Accountants (CalCPAs); CalAsian Chamber of Commerce; California Taxpayers Association (CalTax)

Opponents: US Senator Bernie Sanders; SEIU United Healthcare Workers West

PROHIBITS NEW STATE PERSONAL PROPERTY TAXES AND CERTAIN RETROACTIVE STATE TAXES. INITIATIVE CONSTITUTIONAL AMENDMENT. Prohibits any new state tax (1) imposed on the ownership of personal property (all things people own other than real estate), or (2) that applies retroactively based on taxpayer’s past activities. Nullifies taxes enacted after January 1, 2026 that conflict with this measure.

Fiscal Impact: Possibility that tax revenues will not go up as much in the future.

Supporters: CA Professional Firefighters; State Building & Construction Trades Council of CA; AMVETS Department of CA

Opponents: US Senator Bernie Sanders; SEIU United Healthcare Workers West

Beginning January 1, 2027, requires any local special tax to be approved by two-thirds of voters before it can be imposed, extended, or increased—and would apply that two-thirds threshold even to taxes placed on the ballot through the voter initiative process. It would also bar local governments, including voters acting by initiative, from levying ad valorem taxes on real property except as already permitted under the Constitution.

REQUIRES COMMUNITY HEALTH CLINICS SPEND 90% OF REVENUE ON PROGRAM SERVICES. INITIATIVE STATUTE. Imposes penalties on nonprofit Federally Qualified Health Centers (community clinics providing primary care to medically underserved areas and populations) that spend less than 90% of revenue on “program services” advancing their charitable purpose, including but not limited to patient services.

Fiscal Impact: Increased state costs in the low tens of millions of dollars per year, covered by fees.

Supporters: None submitted

Opponents: American Academy of Pediatrics CA; CA School Nurses Org; CA Academy of Family Physicians; CA Medical Assoc.

MODIFIES ENVIRONMENTAL REVIEW FOR CERTAIN PROJECTS. INITIATIVE STATUTE. Amends California Environmental Quality Act (CEQA) to expedite environmental review for certain projects (including most housing, transportation, water, and health projects) by setting deadlines to complete environmental review and resolve lawsuits challenging project approvals.

Fiscal Impact: Initial costs for state and local governments, likely in the high tens of millions of dollars—potentially exceeding $100 million—annually, partly covered by fees. Uncertain, potentially more significant positive or negative longer-term fiscal effects.

Supporters: California Children’s Hospital Association; California Water Association; California Council for Affordable Housing

Opponents: Coalition for Clean Air; CA Environmental Voters; Physicians for Social Responsibility, LA; National Wildlife Federation

LIMITS VOTERS’ ABILITY TO RAISE REVENUES FOR LOCAL GOVERNMENT SERVICES. LEGISLATIVE CONSTITUTIONAL AMENDMENT. Limits voters’ ability to pass voter-proposed local special taxes by increasing percentage of votes needed to approve such ballot measures from a majority (over 50%) to two-thirds, beginning January 1, 2027.

Fiscal Impact: Possibility that local government tax revenues will not go up as much in the future due to a higher vote threshold for certain taxes.

Supporters: California Taxpayers Association; Family Business Association of California; California Hispanic Chambers of Commerce

Opponents: California Professional Firefighters; California Federation of Teachers; Nurse Alliance of SEIU CA

Prohibits certain hospitals and medical entities from paying executives, managers, and administrators more than $450,000 in total annual compensation (salary, paid time off, bonuses, stock options, company vehicle, etc.) or severance payments; compensation limit increases up to 3.5% annually based on Consumer Price Index. Requires annual reporting of all executives, managers, and administrators receiving compensation or severance packages exceeding limit. Authorizes enforcement by Attorney General or taxpayer litigation. Penalties for violations include fines, revocation of tax-exempt status, and appointment of Attorney General representative to board of directors of nonprofit corporations. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: State cost as much as several million dollars annually to enforce the new limit on pay for administrators at affected hospitals and physician groups, mostly covered by fees charged to the affected entities.

Prohibits certain large health care unions from political spending over specified amounts regarding state or local ballot measures without following certain member consent requirements. Requires these unions to provide members annual notice describing prior-year political spending. Requirements apply only to unions, not employers. Imposes monetary penalties on unions as follows: (1) for violations of member consent requirements, the amount spent in violation of the requirements; and (2) for violations of member notice requirements, $1,000 per member (e.g., a $50,000,000 penalty if union does not provide notice to 50,000 members). Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: Increased annual state costs, potentially in the range of millions of dollars, with some costs paid for by penalties created by the measure.

Limits automobile accident victims’ recovery of medical expenses and Fees their attorney may receive. Automobile accident victims often hire an attorney on a contingency basis, meaning the attorney receives an agreed-upon percentage of the victim’s monetary recovery if the victim wins. This measure would:

• limit the fees such attorneys may receive so victims retain at least 75% of their monetary recovery, but does not restrict fee arrangements for defendants’ attorneys;
• for certain medical expenses, increase victims’ burden of proof and limit the amounts they may recover; and
• prohibit certain financial arrangements between attorneys and medical providers. 

Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: Likely net savings to the state trial courts ranging from the millions of dollars to the tens of millions of dollars annually. These effects would depend on the overall reduction in motor vehicle accident cases being filed as well as the degree to which remaining cases would take longer to resolve. Increased state Medi-Cal costs that could range from the millions to tens of millions of dollars annually due to various factors, including a reduction in compensation for some motor vehicle accidents used to offset Medi-Cal costs.

Classifies rideshare companies as “common carriers” under California law (like taxis, buses, and trains), requiring those companies to exercise a heightened standard of care to avoid harm to passengers. Makes rideshare companies legally responsible for sexual misconduct, including sexual assault, against riders or drivers, regardless of whether driver is an independent contractor. Requires rideshare companies to publish monthly report of sexual misconduct incidents and notify riders of known risks of sexual misconduct associated with a matched driver. Requires annual fingerprinting and background checks for rideshare drivers. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: Increased state costs likely ranging from the low tens of millions of dollars to the mid-tens of millions of dollars annually to process driver fingerprint background checks, potentially to be covered by fees. Increased state court costs ranging from the millions of dollars to the low tens of millions of dollars annually to process increased civil case workload. Increased costs to CPUC in the low millions of dollars annually to develop, implement, and enforce new regulations, to be covered by fees paid by rideshare companies.

Requires an initiative constitutional amendment to comply with any increased voter approval threshold that it seeks to impose on future ballot measures. Guarantees in the state constitution the ability of local governments to submit advisory questions to voters.