Ballot Propositions: Much to Consider

As we’ve been hearing about this year, taxation for wealthy Californians is a hot topic of debate in the November 3 statewide general election. Overall, there are 14 statewide ballot propositions for voters to consider – with the Proposition 40 tax for billionaires being the most prominent.

There are also two LA County measures on the ballot; and nothing from the City of Long Beach in this election on ballot measures. Deciding on 16 ballot measures – along with who will be the new governor, the next LA County Sheriff, and winners of Congressional and state office races – are giving voters a full plate.

Of the 14 ballot initiatives, five ended up on the ballot through placement by the state legislature (Propositions 1, 2, 4, 5 and 43). Nine were placed there by petition signatures (Propositions 3, 37, 38, 39, 40, 41, 42, 44 and 45).

For LA County’s Measure A, voters will decide on a charter amendment that addresses labor disputes in the county and how they can be resolved. If contract negotiations fall apart, it would force the county and certain unions for public safety employees to go into binding arbitration. Measure E would create protections for the recently created Ethics Commission, which was authorized by L.A. County voters in 2024 through Measure G. It would provide greater independence and structure to the County of Los Angeles Ethics Commission, Office of Ethics Compliance, and Ethics Compliance Officer.

California’s Prop. 40 would levy a one-time 5% tax on the accumulated wealth of taxpayers and trusts with covered assets valued over $1 billion to fund state health care programs, food assistance programs, and public education. It was sponsored by the SEIU-UHW union, which has been leading the campaign in support of the initiative. It has been endorsed by U.S. Sen. Bernie Sanders (D-VT), U.S. Rep. Ro Khanna (D-CA), California Democratic Socialists of America, Teamsters California, and UNITE HERE Local 11. It’s been opposed by U.S. Rep. Kevin Kiley (R), Gov. Gavin Newsom (D), Republican gubernatorial candidate Steve Hilton, Democratic gubernatorial candidate Xavier Becerra, the California Teachers Association, State Building and Construction Trades Council of California and Planned Parenthood Affiliates of California.

Google co-founder Sergey Brin has played a leading role in organizing opposition through two other ballot initiatives. Brin has spent more than $138 million on the campaign against the measure, including getting these two competing initiatives on the ballot – Prop. 41 and Prop. 42.

Prop. 41 requires state laws or ballot initiatives levying a new special tax enacted after January 1, 2026 to require the government entities or departments receiving revenue from the new tax to eliminate their lowest-performing programs and reinvest those savings in higher-performing programs. It would require new tax proposals passed after the start of this year to follow the state’s annual spending limit. The nonpartisan state auditor would review new tax proposals before they reach voters and identify potential spending cuts in the programs they’d fund.

Prop. 42 prohibits the enactment of new taxes after January 1, 2026 on ownership or accumulation of retirement holdings, individually owned assets and other forms of personal savings. It would bar new taxes on personal property such as businesses, investments, retirement accounts, trusts and art collections – which would block what Prop. 40 targets. It would also prohibit retroactive taxes, which would block a key part of Prop. 40: taxing wealth accumulated before the measure takes effect.

In total, opponents have raised more than $205 million to stop Prop. 40, according to campaign finance records accessed by CalMatters.

The Other Ballot Measures

Another potential tax measure for high-income earners in California is Prop. 3, which would make income taxes on higher earners permanent to fund education and healthcare. This tax was first enacted in 2012, and it’s set to expire in 2031. Under the measure, income taxes for top earners range from 10.3% (for individual income over $360,000) to 12.3% (for individual income over $721,000), with graduated rates in between. The California Teachers Association got this measure on the ballot, and it focuses on public education. For the collected taxes, 89% of the funds would go to K-12 public school and 11% would go to community colleges. It typically raises $5 billion to $15 billion a year, which makes up about 3% to 10% of overall K-12 spending.

Prop. 43 relates to taxation that can be adopted through local special taxes, which could include sales taxes, real estate taxes and utility taxes. Opponents say it would protect taxpayers by restoring Proposition 13’s two-thirds vote requirement to pass local special taxes. Courts have allowed special interests to pass earmarked tax increases with fewer votes. Prop. 43 closes this loophole, protecting taxpayers, homeowners and renters, say supporters. Howard Jarvis Taxpayers Association is leading the opposition; supporters include California Professional Firefighters, California Federation of Teachers, and Nurse Alliance of SEIU CA.

What happens at upcoming state elections will be affected by Propositions 4, 5 and 39. Prop. 5 is the most discussed of the three, as it’s tied to recall elections of Gov. Gray Davis in 2003, Gov. Gavin Newsom in 2021, and the author of Prop. 5, Democrat Josh Newman, a State Senator who was recalled on June 5, 2018.

Prop. 5 would eliminate the successor election when a state officer is recalled, leaving the office vacant until it is filled according to state law. Instead of having the recall election, depending on the office and the timing, a replacement would be appointed or elected in a special election.

If Prop. 5 passes, the governor would call a special election within about four months to replace a recalled state senator or assemblymember. If the governor was recalled within the first two years of their term, the secretary of state would call a special election. During the second two years of that governor’s term, the lieutenant governor would finish that term. The ousted official would be allowed to run for the same office in the special election.

Prop. 4 oversees election administration and campaign financing. It would allow the state and local governments to create programs that provide candidates with public funds under spending limits and eligibility rules. Public funding programs may not use funds earmarked for education, transportation, or public safety. It’s supported by the California Democratic Party, California Nurses Association, ACLU of California, California Common Cause, and Consumer Watchdog. Opponents include California Republican Party, California Chamber of Commerce, California Taxpayers Association, and Howard Jarvis Taxpayers Association, and Reform California.

Prop 39 invalidates mail ballots that do not have last four digits of a designated government-issued identification number written on the envelope. It would also prohibit in-person voting without presenting government-issued identification. Voters would be required to present additional identifying information to elections officials each time they vote. Supporters include Latino American Political Association, Howard Jarvis Taxpayers Association, and California Women’s Leadership Association. Opponents include ACLU California Action, Common Cause, and League of Women Voters of California.

Bonds, Other Funding Programs

A total of $44.65 billion in bonds could be approved on election day through Prop. 1, 37 and 38. Prop. 1 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. It would cost the state $500 to $600 million annually for about 25 years to pay off. Supporters are US Vets; CA Federation of Teachers; Self-Help for the Elderly; Habitat for Humanity CA; CA Alliance of Child & Family Services, with no opponents submitted for the ballot.

Prop. 37 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 are to be repaid by mortgage payments, and not by the state. Supporters include United Nurses Associations of California, California Conference of Carpenters, and California State Treasurer Fiona Ma. No opponents were submitted.

Prop. 38 authorizes $8.4 billion in general obligation bonds for immunology and immunotherapy research; half of the funds will go to a single University of California-affiliated nonprofit medical research institute, and half to research grants. Estimated fiscal Impact: an increased state cost of $500 million to $600 million annually for about 20 years to repay the research bond, with some or all of that cost offset if the funded research generates revenue. Supporters: Michael J. Fox Foundation, Alzheimer’s Los Angeles, Kidney Cancer Association, American Nurses Assoc/CA. Opponents: Robert M. Kaplan, Ph.D.

Prop. 2 increases the state’s Rainy Day Fund. That funding measure was approved by voters in 2014, to provide funding for education, health care, public safety, and other essential services during economic downturns. This constitutional amendment would allow the state to deposit up to 20% of its general fund tax revenue in the state’s reserves, up from the current ceiling of 10%. Supporters include CA Professional Firefighters; LA Chamber of Commerce; Gavin Newsom; Xavier Becerra; and Assemblymember Jesse Gabriel. No opponents were submitted.

Prop. 44 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. It’s expected to bring in increased state costs in the low tens of millions of dollars per year, covered by fees. No supporters were submitted. Opponents include American Academy of Pediatrics CA, CA School Nurses Organization, CA Academy of Family Physicians, and CA Medical Association.

The last of the 14 state ballot initiatives doesn’t involve upfront funds allocation, but it does require state and local governments to spend in the high tens of millions and possibly more than $100 million annually in initial costs, partly covered by fees. Prop. 45 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. The assessment by Secretary of State’s office is uncertain, with potentially more significant positive or negative longer-term fiscal effects. Supporters include California Children’s Hospital Association, California Water Association, and California Council for Affordable Housing. Opponents include Coalition for Clean Air, CA Environmental Voters, Physicians for Social Responsibility, LA, and National Wildlife Federation.

The last day to register online to vote in the Nov. 3, 2026, general election is Oct. 19. Go to registertovote.ca.gov.

For more information on ballot measures and candidates, you can go to California Secretary of State’s Qualified Statewide Ballot Measures website; you’ll also get a print version in the mail if you’re a registered voter in California. The online version will show any updates to the ballot initiatives since the printing and mailing of the state’s Official Voter Information Guide.

The CalMatters 2026 Voter Guide and Ballotpedia 2026 Ballot Propositions websites offer additional information and perspectives on the November election.

Jon LeSage is a resident of Long Beach and a veteran business media reporter and editor. You can reach him at jtlesage1@yahoo.com.