September 30, 2026
With the 2026 legislative session now behind us, California voters will turn to the ballot this November to decide several measures with implications for the state’s economy, housing market, tax structure and business climate.
For Orange County’s business community, these measures address issues central to economic growth — from housing affordability and fiscal stability to taxation, government accountability and regulatory reform.
Following review, OCBC has taken positions on 10 statewide ballot measures. The organization’s positions reflect its focus on strengthening California’s economic competitiveness, expanding housing opportunities, promoting responsible government and supporting an effective regulatory environment.
Proposition 1 – $11.25 Billion Veterans & Affordable Housing Bond — SUPPORT
Proposition 1 would provide $11.25 billion in general obligation bonds for affordable housing, homeownership programs and infrastructure that supports housing development. The measure includes $7.2 billion for multifamily housing and $500 million for infrastructure supporting housing.
OCBC supports Proposition 1 because housing availability is directly connected to workforce attraction and retention and California’s broader economic competitiveness. Additional resources for housing and housing-supporting infrastructure can help address the state’s ongoing housing supply and affordability challenges.
The measure would create approximately $500 million to $600 million in annual General Fund debt service for about 25 years, representing a significant long-term fiscal commitment. OCBC’s support recognizes the importance of expanding housing opportunities while acknowledging the associated state debt.
Proposition 2 – State Rainy Day Fund Increase — SUPPORT
Proposition 2 would increase California’s reserve target from 10% to 20% of General Fund revenues and extend additional requirements for state debt repayment.
OCBC supports the measure because stronger state reserves can improve fiscal stability and help California manage future economic downturns without relying as heavily on abrupt spending reductions, tax increases or other disruptive budget actions.
Greater reserves can provide businesses and communities with a more predictable fiscal environment during periods of economic volatility. The tradeoff is reduced near-term spending flexibility as the state places additional resources into reserves and debt repayment.
Proposition 3 – Permanent Income Tax Increase — OPPOSE
Proposition 3 would permanently extend increased income-tax rates on high-income Californians that are currently scheduled to expire in 2031.
OCBC opposes making these higher marginal income-tax rates permanent because of concerns about California’s tax competitiveness, investment climate and reliance on high-income taxpayers. A permanent increase in tax rates can affect decisions around investment, business activity and where high-income individuals choose to reside.
The measure would provide a more stable source of funding for education and healthcare, but OCBC’s position reflects the importance of maintaining a competitive tax environment that supports long-term economic growth and investment in California.
Proposition 37 – Middle-Income Homebuyer Program — SUPPORT
Proposition 37 would authorize up to $25 billion in revenue bonds to provide loans covering up to 17% of the purchase price of qualifying newly built homes for eligible middle-income homebuyers.
OCBC supports Proposition 37 because of its direct connection to workforce housing and new housing construction. Assistance would be tied to qualifying newly built homes, helping connect homeownership assistance with additional housing supply.
Homebuyer loan payments would repay the bonds rather than relying on the General Fund for repayment. Expanding access to homeownership while supporting new construction can help address housing affordability challenges and strengthen the ability of employers to attract and retain workers.
Proposition 38 – $8.4 Billion Immunology Research Bond — SUPPORT
Proposition 38 would provide $8.4 billion in bond funding for immunology and immunotherapy research throughout California.
OCBC supports the measure because investment in research and innovation can contribute to California’s life sciences economy, supporting scientific advancement, commercialization and high-skilled employment. These priorities are particularly relevant to Orange County’s growing life sciences and medical technology sectors.
The measure would also add to California’s outstanding bond obligations and therefore carries a long-term fiscal cost. OCBC’s support reflects the potential economic development benefits associated with continued investment in research, innovation and California’s life sciences ecosystem.
Proposition 40 – 5% Billionaire Wealth Tax — OPPOSE
Proposition 40 would impose a one-time 5% tax on covered wealth above $1 billion.
OCBC opposes Proposition 40 because it would establish a new form of wealth taxation and raises concerns about California’s tax competitiveness, capital investment and taxpayer mobility. The measure could influence decisions about where high-net-worth individuals maintain residency and where capital is invested.
The Legislative Analyst’s Office has also identified the potential for an ongoing reduction in income-tax revenue if changes in billionaire residency result from the measure. From an economic development perspective, OCBC’s position reflects the importance of maintaining a predictable and competitive tax environment for investment and economic activity.
Proposition 41 – Government Efficiency & Transparency — SUPPORT
Proposition 41 would establish additional requirements related to new special taxes, government program performance and audits, including State Auditor reviews of programs funded by certain new or increased special taxes.
OCBC supports the measure because greater transparency, performance measurement and oversight can strengthen accountability for public spending. Effective government and responsible management of taxpayer resources are important components of a competitive economic environment.
Additional review of government programs can also provide greater visibility into whether public resources are achieving their intended outcomes, supporting more informed fiscal decision-making.
Proposition 42 – Retirement & Personal Property Protection — SUPPORT
Proposition 42 would prohibit specified new taxes on personal property and restrict certain forms of retroactive taxation. The measure also includes provisions that could affect the implementation of Proposition 40 depending on the respective election results.
OCBC supports Proposition 42 because tax certainty and predictability are important considerations for businesses and investors. Restrictions on certain new and retroactive taxes can provide greater clarity when businesses and individuals make long-term investment and financial decisions.
A predictable tax environment can help support investment and economic activity by reducing uncertainty around future tax liabilities.
Proposition 43 – Local Taxpayer Protection — SUPPORT
Proposition 43 would require two-thirds voter approval for voter-initiated local special taxes.
OCBC supports Proposition 43 because local taxes can directly affect employers, investment and the cost of doing business. Requiring a higher threshold for approval of certain voter-initiated local special taxes would provide an additional taxpayer safeguard and require broader voter support before new taxes are adopted.
At the same time, local governments rely on tax revenue to fund infrastructure and public services that contribute to economic development. OCBC’s position reflects the importance of balancing local fiscal needs with taxpayer protection and maintaining a competitive environment for businesses.
Proposition 45 – CEQA Reform — SUPPORT
Proposition 45 would streamline CEQA review and permitting for qualifying housing, water, infrastructure, clean energy and other projects.
OCBC supports Proposition 45 because lengthy and complex permitting processes can increase project costs and delay the delivery of housing, infrastructure and other investments that support economic growth.
Streamlining CEQA for qualifying projects can help accelerate housing production, improve infrastructure delivery and facilitate development while maintaining a more efficient regulatory process. The measure directly aligns with OCBC’s priorities around housing, infrastructure, permitting reform and economic development.
Looking Ahead
The 2026 ballot includes measures addressing several issues that will shape California’s economic environment in the years ahead — from housing and infrastructure to taxation, fiscal stability, government accountability and regulatory reform.
OCBC will continue to advocate for policies that strengthen economic competitiveness, expand housing opportunities, promote responsible government and improve the regulatory environment for businesses throughout Orange County and California.
For questions, please email Vice President of Government Affairs Amanda Walsh.
