Proposition 41 is a proposed constitutional amendment that would require audits of programs funded by new state special taxes created through ballot measures.
Read more Your guide to California’s Proposition 41
Like Prop. 42, the measure is backed by Building a Better California, a group funded by Google co-founder Sergey Brin and a number of other wealthy tech investors and entrepreneurs. And like Prop. 42, it would include a poison pill for Prop. 40, the proposed one-time, 5% wealth tax on California residents with more than $1 billion in assets.
What would Prop. 41 do?
One of the most important provisions of Prop. 41 would ban taxes on or after Jan. 1, 2026 that are exempt from state spending limits. That line would effectively undo the Prop. 40 billionaire tax if they both pass and Prop. 41 receives more votes.
But the measure also has other goals. Under Prop. 41, the California state auditor would be required to review programs that would receive money from a new or increased special tax — like a new fuel tax that funds transportation projects — proposed through ballot measures.
The first audit would take place after an initiative’s backers collect 25% of the signatures needed to qualify for the ballot. The state auditor would examine how the proposed program would spend the money, whether it has adequate oversight and where it could reduce annual costs by 10%.
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If the initiative qualifies for the ballot, a summary of the audit would be included in the state’s Voter Information Guide. If voters approve the tax, the audit’s cost would be paid from the new revenue.
Prop. 41 also would require ongoing audits every four years of programs funded by new or increased special taxes enacted after Jan. 1, 2026, with an eye toward increasing programs’ efficiency. Those costs also would be paid with tax revenue.
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What’s the fiscal impact of Prop. 41?
The Legislative Analyst’s Office says the measure’s overall fiscal effect is unknown. The State Auditor’s Office would face new costs — likely in the low millions of dollars per year — while audits could produce savings if policymakers adopt recommendations.
What do supporters say about Prop. 41?
Supporters say Californians are already overtaxed, with little progress on major issues like homelessness. They describe Prop. 41 as a government accountability measure designed to provide more oversight of that spending.
Backers, which include California Chamber of Commerce and California Taxpayers Association, argue voters deserve independent information about whether proposed programs are well managed before approving new taxes. They argue audits could expose waste, fraud and mismanagement while improving public services.
What do opponents say?
Opponents, including SEIU-United Healthcare Workers West, say Prop. 41 is a “smoke screen” designed to make Prop. 40’s billionaire tax impossible to enforce. They note the measure is heavily funded by Brin, who has spent $100 million of his Forbes-estimated $250 billion wealth on efforts to thwart the billionaire tax.
By canceling out the billionaire tax, critics say Prop. 41 would deprive California of money intended to address healthcare cuts signed into law by President Donald Trump last year.
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