State and Local Ballot Measures Deemed City Business
Proposition 1 - Authorizes Bonds for Housing Affordability Programs. Legislative Statute
Summary: 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.
Summary of Legislative Analyst’s Estimate of Net State and Local Government Fiscal Impact: Increased state cost of $500 million to $600 million annually for about 25 years to repay the housing bond.
City of Sunnyvale Staff Analysis: Proposition 1 would dedicate $11.25 billion in State general obligation bonds to expand affordable housing across California, including $10 billion for the construction, preservation, and rehabilitation of affordable rental housing.
The directly supports the City’s 2026 Priority Advocacy Issue 5(A) to support statewide affordable housing bond measures that increase the production of affordable housing and address housing needs in Sunnyvale and the region.
Since 2022, the City has committed over $23 million in local funds towards projects that will help create nearly 300 units of affordable housing. However, City funding alone is insufficient to close the financing gaps that affordable housing projects face. Additional sources, including State funding programs, are sorely needed. This challenge is directly addressed by Housing Element Program H8 and Policy H-2.1, which both call for the City to identify and leverage new funding mechanisms to support and maximize affordable housing projects. Proposition 1 would create a substantial source of State funding to help enable the City’s pipeline of affordable housing projects to move forward.
Existing City Policy:
Council Policy 7.4.14 Legislative Advocacy Positions 5. Affordable Housing, Homelessness, and Land Use (A) Support regional and statewide affordable housing bond measures that will increase the production of affordable housing and distribute funds fairly to address the housing needs of Sunnyvale and the region.
Housing Element H8. New Funding Mechanisms and Partnerships for Affordable Housing. Evaluate new mechanisms for funding affordable housing for lower-income households, including but not limited to: real estate transfer tax, business tax for housing, short-term rental taxes or fees, and/or enhanced infrastructure financing districts.
Housing Element Policy H-2.1: Maximize Affordable Housing. Leverage local financial assistance with other sources of funding and identify new funding sources for affordable Attachment 1
housing to maximize the number of affordable units and to reach the deepest level of affordability.
Prop 1 Staff Recommendation: Support
Proposition 2 - Increases State’s Rainy Day Fund. Legislative Constitutional Amendment.
Summary: Increases California’s Rainy Day Fund, approved by voters in 2014, to provide funding for education, health care, public safety, and other essential services during economic downturns.
Summary of Legislative Analyst’s Estimate of Net State and Local Government Fiscal Impact: State budget reserves would be higher.
City of Sunnyvale Staff Analysis: Proposition 2 would double the maximum cap of the state’s Budget Stabilization Account (Rainy Day Fund) from 10% to 20% of General Fund tax revenues. A larger state reserve would provide additional resources to help manage fluctuations between budget surpluses and deficits and maintain funding for essential public services during economic downturns. Greater state budget stability could also reduce the risk of significant reductions in state funding for programs and services that benefit local governments and communities, providing greater predictability in resources available to support local service delivery.
Existing City Policy:
Council Policy 7.0 Long-Term Advocacy Positions – Planning and Management, B.
Fiscal Management, (5) Ensure local governments’ revenue sources are protected and predictable.
Prop 2 Staff Recommendation: Support
Proposition 37 - Creates Loan Program for Middle-Income Buyers of Qualified New Homes. Initiative Statute.
Summary: 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 repaid by mortgage payments, not State.
Summary of Legislative Analyst’s Estimate of Net State and Local Government Fiscal Impact: No direct state or local costs.
City of Sunnyvale Staff Analysis: Proposition 37 would authorize up to $25 billion in bonds to establish a State-administered home loan program for qualifying middle- income buyers up to 200% of Area Median Income (AMI). This measure directly supports the Housing Element Policy H-2.8: First Time Homebuyer Assistance and Attachment 1
Program H9: First-Time Home Buyer Program, both of which call for the City to continue implementing its First-Time Home Buyer Program and to consider a workforce-income loan program to serve households up to 150% of AMI.
Proposition 37 would implement these objectives by creating a new, State-funded program for workforce-income homebuyers that will complement the City’s existing program, which currently leverages Measure A funding from the County. Additionally, by limiting eligibility to newly constructed homes and qualifying non-residential conversion projects, Proposition 37 would also provide a financial incentive for the production of new housing. Finally, the measure would add no direct cost to the State General Fund because it requires the bonds to be repaid through mortgage payments from program participants.
If passed, this measure would also be taken into consideration in implementing Council Priority Project 2026-14: Public Workforce Housing Feasibility Study, which calls for a study to evaluate the feasibility, locations, and potential funding sources for a public- sector workforce housing program.
Existing City Policy:
Housing Element H9. First-Time Home Buyer Programs. Continue to implement the First-Time Home Buyer Program and aim to assist 5-10 low to moderate income homebuyers per year, or as demand warrants. Seek new funding opportunities for an additional loan program for workforce-income households (up to 150 percent area median income) using new federal, state, and local funding sources such as Permanent Local Housing Allocation.
Housing Element Policy H-2.8 First Time Homebuyer Assistance. Provide first time homebuyer assistance to low- and moderate-income households who currently work and/or live in Sunnyvale and an emphasis on promoting homeownership for transitionally underrepresented community members.
Prop 37 Staff Recommendation: Support
Proposition 43 - Limits Voters’ Ability To Raise Revenues For Local Government Services. Legislative Constitutional Amendment.
Summary: Limits voters’ ability to pass voter-proposed local special taxes by increasing percentage of votes needed to approve such ballot measures from a majority (over 50%) to two-thirds, beginning January 1, 2027.
Summary of Legislative Analyst’s Estimate of Net State and Local Government Fiscal Impact: Possibility that local government tax revenues will not go up as much in the future due to a higher vote threshold for certain taxes.
Attachment 1
City of Sunnyvale Staff Analysis: Proposition 43 would increase the voter-approval threshold for citizen-initiated local special taxes from a simple majority (50% plus one) to a two-thirds supermajority. The higher threshold could make it more difficult for voters to approve locally proposed revenue measures dedicated to specific public services or investments. This could reduce local communities’ flexibility to establish funding for local priorities and could result in lower local revenues than would otherwise be available under the current voter-approval threshold.
Existing City Policy:
Council Policy 7.0 Long-Term Advocacy Positions – Planning and Management, B.
Fiscal Management, (3) Oppose any legislation that reduces or erodes local revenues or local control.
Prop 43 Staff Recommendation: Oppose
Proposition 45 - Modifies Environmental Review For Certain Projects. Initiative Statute.
Summary: 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.
Summary of Legislative Analyst’s Estimate of Net State and Local Government Fiscal Impact: Initial costs for state and local governments, likely in the high tens of millions of dollars—potentially exceeding $100 million—annually, partly covered by fees.
Uncertain, potentially more significant positive or negative longer-term fiscal effects.
City of Sunnyvale Staff Analysis: Proposition 45 would impose significantly shortened timelines for local agencies to complete CEQA review for a broad range of projects, with timelines beginning when an application is deemed complete. These requirements could create substantial implementation challenges for the City, particularly for large or complex projects, and reduce the City’s flexibility to conduct a thorough environmental review and provide meaningful opportunities for public participation.
While the measure could expedite litigation challenging project approvals, those benefits would primarily accrue to project proponents. At the same time, the shortened review timelines could increase the City’s exposure to claims or challenges if it is unable to meet the measure’s requirements.
The measure would also extend expedited CEQA treatment to a broad range of designated projects beyond housing. Housing projects already benefit from numerous CEQA exemptions and streamlined review provisions under existing state law.
Expanding similar protections to other types of projects would increase the City’s Attachment 1
workload and administrative burden at a time when staff are continuing to implement frequently changing state housing and environmental review requirements.
Existing City Policy:
General Plan GOAL LT-1: Coordinated Regional and Local Planning - Protect the quality of life, the natural environment, and property investment, preserve home rule, secure fair share of funding, and provide leadership in the region.
Environmental Protection and Adaptation Policy LT-1.10 Participate in federal, state, and regional programs and processes in order to protect the natural and human environment in Sunnyvale and the region.
Council Policy 7.0 Long-Term Advocacy Positions – Planning and Management, F.
Miscellaneous, (4) Support home-rule authority of charter cities and oppose any efforts to reduce local control over the City and/or its Sphere of Influence.
Prop 45 Staff Recommendation: Oppose
Measure RTM - Public Transit Revenue Measure District Connect Bay Area Transit Initiative. Majority Vote Required.
Summary: The following is the ballot question for Measure RTM: To prevent major service cuts to BART and other transit, avoid increased traffic, and reduce pollution by:
Preserving BART, Caltrain, VTA, SamTrans, AC Transit, Muni, other transit for everyone, including workers, students, seniors, persons with disabilities; Supporting transit safety, cleanliness, affordability, reliability; Repairing targeted roads/potholes; Requiring financial transparency, oversight, accountability; shall the measure enacting a 0.5% (Alameda, Contra Costa, San Mateo, Santa Clara counties) and 1% (San Francisco) sales tax for 14 years generating approximately $980,000,000 annually, be adopted? Summary of Legislative Analyst’s Estimate of Net State and Local Government Fiscal Impact: N/A
City of Sunnyvale Staff Analysis: Measure RTM would establish a 14-year regional sales tax to provide funding for BART, Caltrain, VTA, SamTrans, AC Transit, Muni, and other transit services, as well as certain roadway improvements. In Santa Clara County, the measure would impose a 0.5% sales tax.
Staff recommends the City Council support this ballot measure because it would provide critical funding to Bay Area transit agencies that support the City’s transportation needs and establish a limited-term regional funding source consistent with existing City policy.
The City supports investments that improve transit frequency, reliability, and first/last- mile connectivity, as well as continued coordination with partner agencies to improve transit performance along key regional corridors.
Attachment 1
Existing City Policy:
Council Policy 1.1 Long-Term Advocacy Positions – Land Use and Transportation.
Council Policy 1.1(3) Support efforts to create and maintain regional funding sources for critical transportation needs.
Council Policy 1.1(15) Support identification and pursuit of limited term revenue sources for transit capital and operating purposes only after stabilization of revenue and service levels sustainable to meet the needs of transit dependent populations.
Council Policy 7.0 Long-term advocacy Positions - Planning and Management, B. Fiscal Management, (5) Ensure local governments' revenue sources are protected and predictable.
Measure RTM Staff Recommendation: Support
Measure G - City of Sunnyvale City Charter Amendment - Public Works Contracting. Majority Vote Required.
Summary: The following is the ballot question for Measure G: Shall Section 1309 of the City Charter be amended to allow the City Council to adopt an ordinance giving the City more options for delivery of public works construction projects by authorizing use of any purchasing or contracting method allowed by California law to select contractors for such projects, and to make clarifying changes to the wording of Section 1309 that do not alter the meaning of the section?
Summary of Legislative Analyst’s Estimate of Net State and Local Government Fiscal Impact: N/A
City of Sunnyvale Staff Analysis: Measure G would amend Section 1309 of the Sunnyvale City Charter to provide greater flexibility in delivering public works projects.
The Charter currently limits the City primarily to the traditional design-bid-build method.
The amendment would allow the City Council, by ordinance, to authorize alternative contracting methods permitted under California law, such as design-build and construction manager-at-risk.
Staff recommends the City Council support this ballot measure because these methods could improve coordination between design and construction, provide greater flexibility in managing project costs and schedules, and reduce project delivery risks. The City Council would retain oversight by establishing regulations governing the use and approval of alternative contracting methods. The measure would also make clarifying, non-substantive changes to Section 1309.
Existing City Policy:
Sunnyvale City Charter Section 1309: Contracts on Public Works Attachment 1
Sunnyvale Municipal Code Chapter 2.09: Public Works Contracting Measure G Staff Recommendation: Support
Measure H – City of Sunnyvale City Charter Amendment - City Manager's Authority to Settle Claims. Majority Vote Required.
Summary: The following is the ballot question for Measure H: Shall Section 1314 of the City Charter be amended to authorize the City Council to adopt an ordinance establishing the maximum amount the City Manager may approve to settle legal claims against the City, instead of the current $50,000 limit established by state law and unchanged since 1989, while retaining City Council approval authority for settlements exceeding the amount set by the ordinance?
Summary of Legislative Analyst’s Estimate of Net State and Local Government Fiscal Impact: N/A
City of Sunnyvale Staff Analysis: Measure H would amend Section 1314 of the Sunnyvale City Charter to allow the City Council, by ordinance, to establish the maximum amount the City Manager may approve to settle claims against the City. The current $50,000 limit was established by state law in 1989 and has not been adjusted for inflation. If approved, the measure would allow the Council to establish and subsequently revise the settlement authority without requiring another Charter amendment. An ordinance adopted in August 2026 would set the City Manager’s settlement authority at $250,000 if Measure H is approved.
Staff recommends the City Council support this ballot measure because it would provide greater administrative flexibility and allow certain claims to be resolved more efficiently, while preserving City Council oversight of settlements exceeding the amount established by ordinance. The measure would also allow the Council to adjust the City Manager’s settlement authority in the future as circumstances warrant.
Existing City Policy:
Sunnyvale City Charter Section 1314: Claims Against the City Measure H Staff Recommendation: Support
Measure I – City of Sunnyvale City Charter Amendment - City Council Vacancies.
Majority Vote Required.
Summary: The following is the ballot question for Measure I: Shall Section 606 of the City Charter be amended to require that a person appointed to fill a vacancy on the City Council serve until a successor is elected at the next General Municipal Election Attachment 1
(November of even-numbered years), rather than until an earlier election date that could be consolidated with a statewide election?
Summary of Legislative Analyst’s Estimate of Net State and Local Government Fiscal Impact: N/A
City of Sunnyvale Staff Analysis: Measure I would amend Section 606 of the Sunnyvale City Charter to change when voters elect a successor for a vacant City Council seat that has been filled by appointment. Currently, an appointee serves until the next Special Municipal Election consolidated with a statewide election or the next General Municipal Election, whichever occurs first. The amendment would instead allow the appointee to serve until the next General Municipal Election in November of an even-numbered year.
The Council would retain the option to call a special election rather than fill a vacancy by appointment.
Staff recommends the City Council support this ballot measure because it would align elections for appointed Council vacancies with the City’s regular municipal election cycle, avoid the potential for multiple elections for the same Council seat within a relatively short period, and reduce associated transitions and election costs. The measure would not change the existing limit on the number of appointed Councilmembers who may serve at one time.
Existing City Policy:
Sunnyvale City Charter Section 606: Vacancies
Measure I Staff Recommendation: Support
State Ballot Measures Deemed Not City Business
Proposition 3 - Provides Permanent Funding for Schools And Health Care By Extending Existing Tax on High Incomes. Initiative Constitutional Amendment.
Summary: Makes permanent existing voter-approved tax rates for individuals earning over $371,000 (adjusted annually for inflation). Allocates tax revenues to public education.
Proposition 4 - Repeals Prohibition Against Public Funding of Election Campaigns. Legislative Statute.
Summary: Repeals prohibition on state and local governments offering public funding of candidate election campaigns. Public funding programs may not use funds earmarked for education, transportation, or public safety. (Charter cities like Sunnyvale are not subject to the prohibition).
Attachment 1
Proposition 5 - Changes Recall Election Process For Statewide Officers.
Legislative Constitutional Amendment.
Summary: Under current law, voters elect replacement candidates at the same time as the recall election. This measure instead fills recall vacancies by subsequent special election or appointment.
Proposition 38 - Authorizes Bonds For Immunology Medical Research. Initiative Statute.
Summary: Authorizes $8.4 billion in general obligation bonds for immunology and immunotherapy research, half to a single University of California-affiliated nonprofit medical research institute, half to research grants.
Proposition 39 - Prohibit Citizens From Voting Unless They Present Government- Issued Identification Initiative Constitutional Amendment.
Summary: Invalidates mail ballots that do not have last four digits of designated government-issued identification number written on envelope. Prohibits in-person voting without presenting government-issued identification.
Proposition 40 - Imposes One-Time Tax on Certain Taxpayers. Initiative Constitutional Amendment and Statute.
Summary: Imposes 5% tax on certain taxpayers with assets over $1 billion; revenue primarily for health care. Exempts revenues from constitutional requirements for school funding and spending limit.
Proposition 41 - Prohibits New State Taxes That Exclude Revenues From State Spending Limit. Requires Audits For New State Special Taxes. Initiative Constitutional Amendment.
Summary: Nullifies state taxes enacted after January 1, 2026 that exempt their revenues from voter-approved state spending limit. Requires pre-election and recurring audits of programs funded by new special taxes.
Proposition 42 - Prohibits New State Personal Property Taxes and Certain Retroactive State Taxes. Initiative Constitutional Amendment.
Summary: Prohibits any new state tax (1) imposed on the ownership of personal property (all things people own other than real estate), or (2) that applies retroactively based on taxpayer’s past activities. Nullifies taxes enacted after January 1, 2026 that conflict with this measure.
Proposition 44 - Requires Community Health Clinics Spend 90% of Revenue On Program Services. Initiative Statute.
Attachment 1
Summary: 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.
Attachment 1