ADVOCATING FOR THE INDUSTRY
If passed, AGC of California-supported initiatives would allow the state to invest in the construction industry and build the infrastructure we need for the future.
California’s 2026 State Election: Key Ballot Initiatives to Watch
BY FELIPE FUENTES
an additional 40,000 Californians buy a home. Trough this measure, California can combat the housing crisis, create statewide construction pipelines, and support jobs in the construction industry.
Proposition 2 AGC of California also supports Prop- osition 2, which would allow the state to deposit more into its rainy-day fund. Proposition 2 would raise the deposit cap from 10% to 20% of general fund tax revenues, allowing for future stability during downturns. Proposition 2 also authorizes spending
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alifornia’s 2026 General Election is almost here (as of press time), bringing a clear answer to who
will take over as governor of California after Gavin Newsom. Whether Xavier Becerra earns the post or Steve Hilton sweeps in, Californians will surely want to watch this election. Alongside the race for governor, voters
have many other key races to pay attention to with 80 California Assembly seats and 20 California Senate seats up for reelection. Like the State Assembly, all seats of the U.S. House of Representatives are also up for election. With the passage of Proposi- tion 50, which mandates the redefinition of California’s voter district boundaries, some surprising outcomes are likely to emerge in the congressional races. Tis election cycle, voters can weigh
in on 14 statewide propositions that could change a variety of infrastructure, healthcare, and tax laws. AGC has taken positions on five of these ballot measures.
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CALIFORNIA CONSTRUCTOR NOVEMBER/DECEMBER 2026
Proposition 45 AGC of California remains strongly in sup- port of Proposition 45 and has committed $250,000 toward its passage. If passed, Proposition 45 would set deadlines for environmental review on specified infra- structure projects to reduce delays and delay-induced costs. Te last edition of California Constructor contains a more in-depth review of this proposition and AGC of California’s staunch support of it. Similarly supported by AGC of Cali- fornia are Proposition 1 and Proposition 2; opposed are Propositions 40 and 43.
Proposition 1 Proposition 1 aims to combat the housing crisis through an $11.25 billion bond, with $1.25 billion dedicated to veteran housing, and the rest put toward afford- able renter housing, homeownership, farmworker housing, and related pro- grams. The bond has the potential to fund up to 40,000 rental units and help
tax revenues to pay off the state’s federal unemployment-insurance loans and stipulates that, once capped, the funds may be spent only on infrastructure. If passed, these larger reserves would create a cushion to insulate the state from abrupt infrastructure cuts during downturns, allowing surpluses from past years to carry the general fund through dips in revenue. Additionally, the infrastruc- ture-only stipulation directly supports funding for jobs in construction.
Proposition 40 Proposition 40 has garnered much media attention since its inception. Te billion- aire tax act would impose a one-time tax for 2026 on individuals and certain trusts with total net worth exceeding $1 billion. Te liability for this tax depends on California residency on January 1, 2026, and it requires taxpayers to pay immediately or in five installments with a deferral charge. Ninety percent of the proceeds from
this tax would support healthcare, with the rest of the tax reserved for education and food assistance. While this measure aims to offset state and federal reductions to health, education, and food programs, multiple state offices predict that the tens of billions in temporary revenue this tax
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