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Report regarding consideration of positions on Statewide Ballot Measures Proposition 1 and Proposition 43 for the November 3, 2026 General Election (Megan Wooley-Ousdahl, Deputy City Manager)
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RECOMMENDATION
Recommendation
Consider Proposition 1 and Proposition 43 on the November 3, 2026 General Election ballot, and provide direction to staff regarding an official position (support, oppose, or take no position) and the level of effort to be expended regarding sharing the City’s positions.
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BACKGROUND
The November statewide ballot includes multiple propositions, including Proposition 1: The Veterans and Affordable Housing Bond Act of 2026, and Proposition 43: Limits Voters’ Ability to Raise Revenues for Local Government Services.
The League of California Cities (Cal Cities) has asked cities to support Proposition 1 and to oppose Proposition 43. Staff is seeking direction from the City Council regarding official positions on these propositions and the level of effort that staff should expend in sharing the City’s positions with the community.
DISCUSSION
Proposition 1
The State uses general obligation bonds to fund various housing programs. Bonds are a way the State borrows money to cover the up-front costs of a development and then repays the money, plus interest, over time.
Proposition 1: The Veterans and Affordable Housing Bond Act of 2026 is a measure placed on the November 3, 2026 ballot by the Legislature that would replenish existing housing programs for the development, preservation, and rehabilitation of affordable housing projects.
Proposition 1 would allow the State to sell $11.25 billion in general obligation bonds for housing purposes. This amount consists of (1) a $10 billion bond for a variety of housing programs that would be repaid by the State’s General Fund and (2) a $1.25 billion bond that would be repaid by veterans’ payments on their home loans.
Arguments in Support
Proponents of Proposition 1 argue that it give...
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