TO: HONORABLE MAYOR
AND CITY COUNCIL
FROM: Emily S. Lam
SUBJECT: 2026 General Election
Statewide Ballot Measures
DATE: August 20, 2026
Approved
Date:
8/21/2026
COUNCIL DISTRICT: Citywide
REASON FOR REPLACEMENT
This replacement memorandum eliminates recommendation (d) to adopt a “support in concept” position for Proposition 45 – Modifies Environmental Review for Certain Projects. Initiative Statute. The Administration recommends no position on this proposition. Input received after the original memorandum indicates that implementation would strain existing City resources should voters approve it.
RECOMMENDATION
Adopt a resolution taking the following positions on statewide ballot measures qualified for the California general election on November 3, 2026, and authorize the City Manager’s Office of Administration, Policy, and Intergovernmental Relations to advocate in accordance with City Council direction:
(a) Proposition 37 – Creates Loan Program for Middle-Income Buyers of Qualified New Homes. Initiative Statute – SUPPORT
(b) Proposition 39 – Prohibits Citizens From Voting Unless They Present Government-Issued Identification. Initiative Constitutional Amendment – OPPOSE
(c) Proposition 43 – Limits Voters’ Ability to Raise Revenues for Local Government Services. Legislative Constitutional Amendment. – Assembly Constitutional Amendment – OPPOSE
COUNCIL AGENDA: 8/25/26
FILE: 26-870
ITEM: 3.3
HONORABLE MAYOR AND CITY COUNCIL
August 20, 2026
Subject: 2026 General Election Statewide Ballot Measures
SUMMARY AND OUTCOME
The Administration recommends that City Council support or oppose ballot measures directly affecting the City of San José, residents, and businesses, consistent with policy positions in the Legislative Program and Priorities.1 The Administration will advocate in accordance with City Council direction for the November 3, 2026 general election.
BACKGROUND
The City Council adopted positions on relevant statewide ballot measures in past elections that contributed to the outcomes.
The State of California offers two paths to placing a measure on the ballot. First, the California Legislature can pass a bill to propose bonds, constitutional amendments, or legal changes. Second, any California voter can place an initiative or referendum on the ballot by following the State of California’s Office of the Secretary of State process. 2 City Manager’s Office of Administration, Policy, and Intergovernmental Relations (CMO/API) last received direction from the City Council on the Legislative Program and Priorities on January 13, 2026 (Item 3.6 File 26-027)
3. CMO/API presented a
recommendation regarding Proposition 1 on August 11, 2026, and is scheduled to present the Intergovernmental Relations Report on September 22, 2026.4
ANALYSIS
Proposition 37: Creates Loan Program for Middle-Income Buyers of Qualified New Homes. Initiative Statute (Attachment A).
Staff Recommendation: Support
This proposition qualified for the ballot through a citizen-led initiative. It creates a down payment assistance program for eligible middle-income first-time buyers of new homes or housing converted from nonresidential buildings, through up to $25 billion in revenue bonds offered by the California Housing Finance Agency. 5 The City estimates that
133,000 (41%) households would be eligible for this program in San José. For an average San José home priced at $1.4 million, an eligible buyer participating in the assistance program could provide a reduced amount of $42,000 (3%) instead of
1 https://www.sanjoseca.gov/home/showdocument?id=128505 2 https://elections.cdn.sos.ca.gov/ballot-measures/pdf/statewide-initiative-guide.pdf 3 https://sanjose.legistar.com/LegislationDetail.aspx?ID=7784029&GUID=E816A8C1-9D57-4DE4-BA72- C159E2086963
4 https://sanjose.legistar.com/View.ashx?M=F&ID=15737620&GUID=11CA8D8C-4628-465B-ACBA- 7CD24D085119
5 https://lao.ca.gov/BallotAnalysis/Proposition?number=37&year=2026
HONORABLE MAYOR AND CITY COUNCIL
August 20, 2026
Subject: 2026 General Election Statewide Ballot Measures
$280,000 (20%) as the conventional down payment. This program helps working families who cannot save enough for a down payment to buy a home.
The proposition allows developers to build homes eligible for purchase through the program. They could elect to participate as a “qualified builder,” which mandates compliance with enhanced labor standards, including specified worker training requirements for certain housing projects. In exchange, qualified builders would be subject to alternative construction defect requirements that generally provide developers with greater flexibility. While the City does not receive a direct allocation of bond proceeds, the program’s new construction requirement supports the City’s Focus Area of Building More Housing and generates employment.
Proponents anticipate the construction of 190,000 new housing units statewide. The City intends to attract this investment to San José through existing incentive programs.
As this proposition stipulates mortgage payments from homebuyers to repay bond investors, it would not result in direct local costs.
Proposition 39: Prohibits Citizens From Voting Unless They Present Government- Issued Identification. Initiative Constitutional Amendment (Attachment B).
Staff Recommendation: Oppose
This proposition qualified for the ballot through a citizen-led initiative. It mandates election officials to verify and report U.S. citizenship status of registered voters. The proposition requires in-person voters to present government-issued identification and vote-by-mail voters to provide the last four digits of a selected government identification number.
6 It also requires the state to provide voter identification cards upon request and audit election officials on compliance. This proposition increases state and local government costs by tens of millions to low hundreds of millions of dollars each year.
These include additional resources for voter verification, database changes, identification card issuance, election operations, and audits. It conflicts with the City’s Legislative Program and Priorities, which aim to expand voting access. The proposition does not align with City Council Policy 0-22, the Equity Values and Standards Policy7 and the City’s Welcoming San José Plan 3.08 Focus Area 6 – Civic Engagement, both of which seek to increase civic participation.
6 https://lao.ca.gov/BallotAnalysis/Proposition?number=39&year=2026 7 https://www.sanjoseca.gov/home/showpublisheddocument/114681/638627814182830000 8 https://sanjose.legistar.com/View.ashx?M=F&ID=14021045&GUID=8790B538-18DC-477B-B515- 4B4F7180BF71
HONORABLE MAYOR AND CITY COUNCIL
August 20, 2026
Subject: 2026 General Election Statewide Ballot Measures
Proposition 43: Limits Voters’ Ability to Raise Revenues for Local Government Services. Legislative Constitutional Amendment. Assembly Constitutional Amendment (Attachment C).
Staff Recommendation: Oppose
This proposition qualified for the ballot through the passage of Assembly Constitutional Amendment 22, introduced by Assemblymember Wicks. It increases the threshold from a majority to a two-thirds vote for new, extended, or increased local special taxes proposed by voters.9 This proposition could decrease local governments’ tax revenues in the future. The staff recommendation aligns with the June 20, 2026 City Council resolution opposing Initiative 25-0006A1 (withdrawn on June 25, 2026) on limiting the ability of voters to raise revenues for local government services.10
Additional Ballot Measures
The Administration is not recommending positions for other qualified ballot measures based on two criteria. First, most do not directly affect the City, residents, or businesses.
Second, even if the measure would affect the City, residents, or businesses, the City would face implementation challenges given existing resource constraints if voters were to approve the measure. Full details of these measures can be found on the California Secretary of State’s website.
11 EVALUATION AND FOLLOW-UP
CMO/API will include its analysis of Proposition 45 as part of the 2026 Intergovernmental Relations Report for the City Council on September 22, 2026.
COORDINATION
The Administration coordinated this memorandum with the City Attorney’s Office, the City Manager’s Budget Office, the City Manager’s Office of Racial and Social Equity, the City Departments of Environmental Services, Housing, Planning, Building, and Code Enforcement, and Transportation.
9 https://lao.ca.gov/BallotAnalysis/Proposition?number=43&year=2026 10 https://sanjose.legistar.com/View.ashx?M=F&ID=15572906&GUID=6D6B0ADF-2F91-4924-8B83- CEBC3BBB2F07
11 https://www.sos.ca.gov/elections/ballot-measures/qualified-ballot-measures
HONORABLE MAYOR AND CITY COUNCIL
August 20, 2026
Subject: 2026 General Election Statewide Ballot Measures
PUBLIC OUTREACH
This memorandum will be posted on the City’s Council Agenda website for the August 25, 2026 City Council meeting.
BOARD, COMMISSION, COMMITTEE RECOMMENDATION AND INPUT
No commission recommendation or input is associated with this action.
PUBLIC SUBSIDY REPORTING
This item does not include a public subsidy as defined in section 53083 or 53083.1 of the California Government Code or the City’s Open Government Resolution.
CEQA
Not a Project, File No. PP17-010, City Organizational and Administrative Activities resulting in no changes to the physical environment.
Emily S. Lam
Director, City Manager’s Office of
Administration, Policy, and
Intergovernmental Relations
For questions, please contact Han Kang, Deputy Director and Chief Intergovernmental Relations Officer, City Manager’s Office of Administration, Policy, and Intergovernmental Relations, at [email protected].
ATTACHMENTS:
Attachment A: Proposition 37 – Creates Loan Program for Middle-Income Buyers of Qualified New Homes. Initiative Statute.
Attachment B: Proposition 39 – Prohibits Citizens From Voting Unless They Present Government-Issued Identification. Initiative Constitutional Amendment.
Attachment C: Proposition 43 – Limits Voters’ Ability to Raise Revenues for Local Government Services. Legislative Constitutional Amendment.